I invested a sum of money in a project five years ago. The rate of inflation since then has been 5% per year. Now I receive a return of $5 000 on my original investment. I calculate that my real rate of return on the original investment has been 10%. What was the size of my original investment?
A) $2 435
B) $3 105
C) $3 918
D) $3 962
E) $6 309
Correct Answer:
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