An engineer deposits $15,000 into an account when the market interest rate is 8% per year and the inflation rate is 3% per year. The account is left undisturbed for 10 years.
The purchasing power of the accumulated dollars in terms of today's dollars is closest to:
Solution calculated with interest factor with 4 decimal places.
Question 10 options:
A. $40,161
B. $32,384
C. $11,162
D. $24,097