Answer:
"4,000" is the appropriate option.
Step-by-step explanation:
Given:
Real interest rate,
= 6%
Inflation rate,
= 2%
Annual deposit,
= $20,000
Now,
The nominal interest rate will be:
=

=

=
(%)
As per the annual deposit, I was making,
=

=

Inflation rate rise 3% i.e.,
=

=
(%)
Just to earn 1200, I have to:
=

=

Thus the above is the appropriate answer.