Daisy invested $50,000 in a bond that grew to a nominal value of $81,445.63 over 10 years. During this period, the CPI increased from 100 to 162.89 What happened to the real value of her investment in today's dollars? Use this formula: present value=(future value)/((future CPI)/(current CPI))
Answer
A
The real value of the investment increased despite the nominal decrease.
B
The real value of the investment remained approximately 30 dollars comma 000 when adjusted for inflation.
C
The real value of the investment remained the same, at 50 dollars comma 000.
D
The nominal value increased significantly, but the real value decreased due to inflation.