Question
3E. Large-cap stocks had the nominal rates of return of 7.88 percent. The rate of inflation during the last year was 3.93 percent. What is
3E.
Large-cap stocks had the nominal rates of return of 7.88 percent. The rate of inflation during the last year was 3.93 percent. What is the real rate of return for large-cap stocks?
Round the answer to two decimal places in percentage form.
3b.
You are going to save money for your son's education. You have decided to place $4,953 every half year at the end of the period into a saving account earning 12.95 percent per year, compounded semi-annually for the next 6 years. How much money will be in the account at the end of that time period?
Round the answer to two decimal places.
3c.
You need to accumulate $72,593 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 17 years. The savings account pays 8.69 percent per year, compounded annually.How much will each annual payment be?
Round the answer to two decimal places.
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