Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

In this context, the correct answer, which indicates that Mary applied an inflation adjustment in her calculations, involves accounting for the decrease in purchasing power of money over time. Inflation adjustment is crucial in financial calculations because it ensures that future cash flows or income are measured in today's dollars, allowing for more accurate assessments of value and performance across time periods.

By using an inflation adjustment, Mary effectively adjusts her calculations to reflect the real value of money after considering how inflation will erode its purchasing power. This is especially important when evaluating investments or financial projects over multiple periods, ensuring that the analysis remains relevant and isn't distorted by rising prices.

In contrast, other types of adjustments like net return adjustment would focus on the actual returns from an investment after deducting costs and expenses, while risk adjustment considers the uncertainty or potential pitfalls in the investment environment. Interest adjustment would relate to changes in the interest rates affecting borrowing or investment costs, but it does not directly account for inflation itself. Therefore, each of these other options serves a different analytical purpose compared to what inflation adjustment seeks to accomplish.