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1. If the nominal rate of return on a bond is 22 % and the rate of inflation is 14 %, what is the real
1. If the nominal rate of return on a bond is 22 % and the rate of inflation is 14 %, what is the real rate of return on the bond?
2. You want to save 3,000,000 by the time you retire in 30 years and your first deposit into this savings fund will be in one year. You can only afford to save $5,000 per year. What rate of return must you get in order to have the $3,000,000 by the time you retire?
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