Joan dies in 2017 leaving an estate of $ 1 m. She inherited $50,000 from her father in 1980. From 1980 to 2017 the average nominal return on capital was 8%.

(a) What fraction of her wealth at death was inherited, on the Piketty definition of inherited wealth?

(b) Suppose she also inherited $30,000 from her mother in 1987. What fraction of her wealth at death now was inherited?

(c) The inflation rate between 1980 and 2017 averaged 4%. Thus the real return on investments was only 8-4 = 4%. Does this change the calculations in (a) and (b)? Explain.