Answer:
payment in real dollars 4 years later = $15,160.84
Step-by-step explanation:
in current dollars, the interest payment = $400,000 x 4.4% = $17,600
if the inflation rate is 3.8% annual, the value of real dollars will increase by (1 + 3.8%)⁴ - 1 = 1.1609 - 1 = 16.09%
this means that we need to discount the nominal payment by $16.09%;
payment in real dollars 4 years later = $17,600 / (1 + 16.09%) = $15,160.84