initial salary= $50,000 annual growth rate = 4% annual tax rate = 20% risk free rate = 3% The present value of your lifetime earning if you work for 10 years is 421993.58. using this information, If annual inflation is expected to be 3%, what is the real growth rate? How many years of work will it take to earn the real present value of $2 million? real growth rate = years =

b. Suppose you save 10% of your real earnings each year and invest entirely into a broad stock market index. What rate of return is required by the market to have the real equivalent of $2.5 milliion in 10 years?

market return =