Assume that you deposit $5,000 per year in a savings account that pays 4.5% interest. Assume also that the predicted average inflation rate is 5% per year for the next 5 years! Approximately, how much will be in your account at the end of 5 years, when you make the 5th deposit

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the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

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