Please answer the questions based on the following partial balance sheet for the 1st National Bank of Anywhere.

Assets Liabilities___________

Cash 200,000 DD 2,000,000 XR = 20,000

Dep at Fed 120,000

Treasury Bills 80,000

39. I would prefer to retire in 20 years. But in order to afford that "luxury", my retirement portfolio must double in value. Assuming that there are no further contributions to my portfolio, what annual rate of return must I earn on my existing portfolio? _______.

40. Suppose that going forward inflation is 7% per year. How long will it take for

the price level to double? ______.