the graph shows the effect of inflation.\nthe effect of inflation on investments\n$12,000\n$10,000\n$8,000\n$…

the graph shows the effect of inflation.\nthe effect of inflation on investments\n$12,000\n$10,000\n$8,000\n$6,000\n$4,000\n$2,000\ninitial investment 5 years 10 years 15 years 20 years\n— 1% annual inflation — 3% annual inflation\napproximately how much of the initial investments value would be lost after 15 years at 3% inflation?\n15%\n20%\n40%\n50%

the graph shows the effect of inflation.\nthe effect of inflation on investments\n$12,000\n$10,000\n$8,000\n$6,000\n$4,000\n$2,000\ninitial investment 5 years 10 years 15 years 20 years\n— 1% annual inflation — 3% annual inflation\napproximately how much of the initial investments value would be lost after 15 years at 3% inflation?\n15%\n20%\n40%\n50%

Answer

Answer:

C. 40%

Explanation:

Step1: Identify initial and final values

Initial investment value (from graph) is around $10000$ for 3% inflation. After 15 years, value is around $6000$.

Step2: Calculate value - loss percentage

Value - loss amount = $10000 - 6000=4000$. Value - loss percentage = $\frac{4000}{10000}\times100% = 40%$.