Good news: You will almost certainly be a millionaire by the time you retire in...
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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 2.5%. a. What will be the real value of $1 million by the time you retire in terms of todays dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What real annuity (in todays dollars) will $1 million support if the real interest rate at retirement is 2.5% and the annuity must last for 20 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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 2.5%. 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.) Real value b. What real annuity (in today's dollars) will $1 million support if the real interest rate at retirement is 2.5% and the annuity must last for 20 years? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Reol annuity
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