You believe you will need to have saved $500,000 by the time you retire in 40 years in order to live comfortably. You also believe that you will inherit $100,000 in 10 years. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank-be certain to enter "0" wherever required. If the interest rate is 6% per year, what is the future value of your inheritance at retirement? Future value How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance? Additional savings First National Bank pays 6.2% Interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. a. Calculate the effective annual rate for each bank. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Effective Annual Rate First National Bank % Second National Bank % b. Which bank offers the higher effective annual interest rate? First National Bank Second National Bank If investors receive a 6% interest rate on their bank deposits, what real Interest rate will they earn if the inflation rate over the year is: Note: Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Real Inflation Rate Interest Rate % a. Zero b. 3% c. 0%