1) An investment offers a 14% total return over the coming year. Your close friend thinks inflation is going to go through the roof and says the total real return on this investment will be only 9%. What does your friend think the exact inflation rate will be over the next year? Inflation rate 2) You want to have $1 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 8% and the inflation rate is expected to be around 2.1%. What opprox amount must you deposit each year given the real rate of return in order to achieve your goal? Payment =