Answer: $115,012,850.8
Explanation:
given data:
cash out amount in 1993 = $163,882,660
no of years = 7
inflation adjustment carried out on the amount would yield $163,882,660. in 1993 is equal to $115,012,850.8 1987.
This is because the Annual inflation grew over this period at a pace 4.26%.
= 4.26/100 * $163,882,660
= 0.0426 * $163,882,660 * 7
= $48,869,809.21
$163882660 – $48,869,809.21
= $$115,012,850.8