Exercise

# Adjusting future values for inflation

You can now put together what you learned in the previous exercises by following a simple methodology:

- First, forecast the future value of an investment given a rate of return
- Second, discount the future value of the investment by a projected inflation rate

The methodology above will use both the `.fv()`

and `.pv()`

functions to arrive at the projected value of a given investment in today's dollars, adjusted for inflation.

Instructions

**100 XP**

- Calculate the future value of a $10,000 investment returning 8% per year for 10 years using
`.fv()`

and assign it to`investment_1`

. - Calculate the inflation-adjusted present value of
`investment_1`

, using an inflation rate of 3% per year and assign it to`investment_1_discounted`

.