allb2500 allb2500

27-10-2022
Business

Answered

you want to have $2.5 million in real dollars (hint: it means we need to use the real interest rate in the calculation) in an account when you retire in 40 years. the nominal return on your investment is 10.3% and the inflation rate is 3.7% (hint: do not use the approximation when finding the real interest rate). what real amount must you deposit each year to achieve your goal? [10 pts]

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