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Suppose you invest $120,000 today and in 10 years have $160,000. At the time of your investment the Consumer Price Index (CPI) is 110. Assume

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Suppose you invest $120,000 today and in 10 years have $160,000. At the time of your investment the Consumer Price Index (CPI) is 110. Assume that in 10 years the CPlis 177. (answer to two decimals; eg, 12.34%) a. What is your nominal annual rate of retum? % b. What is your real annual rate of return? % c. What is the average annual inflation rate? %

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