Good news you will almost certainly be a millionaire by the, Ask an Expert

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Good news: You will almost certainly be a millionaire by the time you retire in 50 years. Bad news: The inflation rate over your lifetime will average about 3%.

a. What will be the real value of $1 million by the time you retire in terms of today’s dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What real annuity (in today’s dollars) will $1 million support if the real interest rate at retirement is 2% and the annuity must last for 20 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92653611

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