Multiple Choice
Suppose you bought an inflation-indexed security for $12,000 in January 2013 which pays an annual interest of 4 percent.If the value of the inflation index in January 2013 was 106 and its value in January 2014 was 105, what is the value of the inflation-adjusted principal?
A) $12,114.29
B) $11,342.58
C) $8,000.60
D) $13,126.41
Correct Answer:
Verified
Correct Answer:
Verified
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