Quintan's grandfather convinces him to hold his savings of $10,000 in cash. Assuming the average...
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Finance
Quintan's grandfather convinces him to hold his savings of $10,000 in cash. Assuming the average inflation rate is 3.03% every year, what will the real value (inflation adjusted) of Quintan's cash be at the end of five years?
Note: please enter your answer without a "$" sign to be correctly graded by canvas.
Quintan decides to disregard his grandfather's advice and invest his $10,000 into the stock market. Quintan researches inflation rates, finding the historical average is 3.26% per year. He expects his small, diversified portfolio to make 7.38% in interest annually. If Quintan's assumptions about inflation (3.26%) and his returns (7.38%) are true, what will be the real value of his portfolio at the end of 5 years?
Note: please enter your answer without a "$" sign to be correctly graded by canvas.
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