What is the nominal cash-flow

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You want to have $300,000 in real terms 5 years from now. You expect inflation over that time period to be 2% per year. Your investments earn 4% APR (nominal) compounded annually. Based on your expectations, you construct a growing nominal annuity to meet your investment target. What is the nominal cash-flow you would have to deposit in year 3 if inflation turns out to what you expected?

Reference no: EM131874207

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