Suppose That You Need to Accumulate $10 000 in Three

Multiple Choice

Suppose that you need to accumulate $10 000 in three years in today's dollars. What monthly amount in nominal (actual) dollars should you save if your real rate of return is 5% and expected annual inflation rate is 3%?

A) $246.14
B) $258.04
C) $268.96
D) $275.14
E) $281.96