Calculate the nominal terminal value of the investment

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Reference no: EM131025550

Suppose that the inflation rate is 2.5% and the real terminal value of an investment is expected to be $20,000 in 2 years. Calculate the nominal terminal value of the investment at the end of year 2.

A. $21,013

B. $21,000

C. $20,500

D. $20,487

Reference no: EM131025550

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