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Q 3 : The future worth for an initial single - payment investment of $ 1 0 , 0 0 0 after 1 0 years

Q3: The future worth for an initial single-payment investment of $10,000 after 10 years is calculated as $48,068. The expected annual inflation rate is 5.5% for ten years.
a) Calculate the rate of return for this investment (10 points)
b) Calculate the real (inflation-free) rate of return for this investment (7 points)
c) Calculate the current purchasing power for the future value of the investment ( $48,06810 years in the future)(7 points)
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