Inflation Is Running at 2

Multiple Choice

Inflation is running at 2.4% per year when you deposit $11,000 in an account earning 6.5% per year compounded quarterly. In constant dollars, how much money will you have 4 years from now Round your answer to the nearest cent. [Hint: First calculate the value of your account in 4 year's time, and then find its present value based on the inflation rate.]

A) $12,965.96
B) $12,921.51
C) $12,947.97
D) $12,937.97
E) $12,870.38