Answer:
FV= $11,134
Explanation:
Giving the following information:
Future value= $11,134
Interest rate= 4%
Inflation rate= 4%
Number of periods= 9 years
The inflation rate provokes the opposite effect of the interest rate. Therefore, if the interest rate and the inflation rate are equal, the value of money through time remains constant.
FV= PV*(1+i)^n
FV= 11,134* (1+0.04-0.04)^9
FV= $11,134
