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6) Tutt retires and invests $300,000 and earns 7% annually. Assume inflation is 3%. a. What does the investment pay annually? b. What is

6) Tutt retires and invests $300,000 and earns 7% annually. Assume inflation is 3%. a. What does the investment pay annually? b. What is the real rate of return annually? c. If Tutt consumes all of his $21,000 investment income annually, what will happen to his investment and his income?

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