Jamari invests $50,000 in a bond over 8 years. Inflation averages 2% per year during this period. What will the present value of the $50,000 investment be at the end of 8 years? Use this formula to calculate the present value while accounting for inflation: present value is equal to the fraction with numerator future value and denominator open paren 1 plus annual inflation rate close paren to the number of years th power
A
58 dollars comma 582 point 9 7B
38 dollars comma 500 point 0 0C
44 dollars comma 349 point 8 8Use the inflation-adjusted present value formula: present value = future value ÷ (1 + inflation rate)^years. Substituting the values gives $50,000 ÷ (1.02)^8 ≈ $42,674.52. Therefore, the present value is $42,674.52, choice C.
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