In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity?

Academy of PakistanTest & Learning

804Active Users

Academy of PakistanTest & Learning

804Active Users

296Civil EngineeringMedium

AP 18,289.05

BP 16,892.34

CP 15,030.03

DP 20,113.57

Correct answer

C. P 15,030.03

Explanation

The correct answer is P 15,030.03.

In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual inflation is 6%. How much in terms of year zero pesos will be in the account at maturity? - Answer and Explanation | Academy of Pakistan