Question: You would like to have the current equivalent in terms of today's buying power of $2,500 in 7 years. How much would you have to

You would like to have the current equivalent in terms of today's buying power of $2,500 in 7 years. How much would you have to invest today (in nominal terms) to fund this level of real consumption? You expect inflation to be 5% per year over that time period. Your investments earn 7% per year in nominal terms.

$2,234

$1,557

$2,191

$2,500

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