During the past year, you had a portfolio that contained U$.$S$.$ government T$-$bills, long$-$term government bonds, and common stocks. The rates of return on each of them were as follows:

U$.$S$.$ government T$-$bills

U$.$S$.$ government long$-$term bonds

U$.$S$.$ common stocks

$4\mathrm{.}70\%$

$7\mathrm{.}50\%$

$11\mathrm{.}50\%$

During the year, the consumer price index, which measures the rate of inflation, went from $160$ to $-1984=100).$ Compute the rate of inflation during this year. Round your answer to one decimal place.

Rate of inflation: $\%$

Compute the real rates of return on each of the investments in your portfolio based on the inflation rate. Use a minus sign to enter negative values, if any, Do not round intermediate calculations. Round your answers to two decimal places.

Real Rate of Return

U$.$S$.$ government T$-$bills

$\%$

U$.$S$.$ government long$-$term

bonds $$

U$.$S$.$ common stocks $$lol

Attempts $$ Keep the Highest $\frac{0}{6}$

Problem $2-02$

Problem $2-02$

a$.$ Someone in the $36$ percent tax bracket can earn $7$ percent annually on her investments in a tax$-$exempt IRA account. What will be the value of a one$-$time $$12,000$ investment in $5$ years? $10$ years? $20$ years? You may use Appendix $C$ to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar.

in $5$ years: $ $$

in $10$ years: $ $$

in $20$ years: $ $$

b$.$ Suppose the preceding $7$ percent return is taxable rather than tax$-$deferred and the taxes are paid annually. What will be the after$-$tax value of her $$12,000$ investment after $5,10,$ and $20$ years? Do not round intermediate calculations. Round your answers to the nearest dollar.

in $5$ years: $ $$

in $10$ years: $ $$

in $20$ years: $ $$