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Good news: You will almost certainly be a millionaire by the time you retire in 4 5 years. Bad news: The inflation rate over your

Good news: You will almost certainly be a millionaire by the time you retire in 45 years. Bad news: The inflation rate over your lifetime will average about 3%
a. What will be the real value of $1 million by the time you retire, in terms of today's dollars?
b. What real annuity (in todays dollars) will $1 million support if the real interest rate at retirement is 2% and the annuity must last for 20 years?

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