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.

  $21012.50

Step-by-step explanation:

$20,000 today will be inflated to $20,000·(1.025)^2 ≈ $21012.50 in 2 years. We presume this is the nominal terminal value you want.

answer: b

step-by-step explanation:

proportions are fractions that equal to each other. so if two fractions are the same, they are proportional.

let's check the answers to see if they are proportional.

question a is not proportional because you can't turn 1.5/3 to 3/9. if you try to multiply 1.5/3 by 2 or 3, you wont get 3/9. it's impossible to make the fractions the same.

question b is not proportional because you can't turn 22/33 to 4/6. 33 can't go into 6.

question c is proportional because when you multiply 2 and 3 by 71, you would get 142/213, and those fractions equal to each other

question d is proportional because when you divide 14 and 7 by 2, you would end up with 7/3.5, and those fractions equal to each other.