Assume in 2009, an Investment of $2400 Was Made in a Bond

Multiple Choice

Assume in 2009, an investment of $2400 was made in a bond earning 9% compounded annually. Assume that the buyer pays at rate R and the annual rate of inflation is I.
Suppose in the year 2019, the value V of the investment in constant 2009 dollars is $V ( I , R ) = 2400 \left[ \frac { 1 + 0.09 ( 1 - R ) } { 1 + I } \right] ^ { 10 }$ . Calculate the function $V ( I , R )$ for $R = 0.06$ and $I = 0.05$ . Round your answer to the nearest cent.

A) $\$ 5,148.94$
B) $\$ 3,319.05$
C) $\$ 2,493.01$
D) $\$ 2,479.09$
E) $\$ 4,219.43$