Jules is saving up for an around-the-world trip. He currently has 4000 put away for the trip and he estimates that his total expenses will be about 50 per day, so right now he can afford an 80-day trip. Jules is deciding whether he should begin his trip now or wait for a year. If he goes next year, he expects his nominal expenses to be higher: 51 per day; this is because of inflation. In the meantime, he can lend the 4000 to his cousin at an interest rate of 6% (the loan is certain to be repaid).

1. How many days can Jules afford to travel if he waits one year before he goes on the trip?
2. Use the answer from part (a) to calculate the real interest rate in terms of travel days.
3. What is the inflation rate in terms of traveling expenses?
4. Calculate the real interest rate in terms of travel days using the formula = . Do you get the same answer? Explain your result.