A fixed-weight price index like the CPI the change in the cost of living because it take into account that people can substitute less expensive goods for ones that have become more expensive.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; ///pegged exchange rate with the united states;