You current salary is $50,000 per year. You expect to get a 5% nominal wage at the end of the year. If inflation is expected to be 2% over the next year, what is your real percentage raise.

Choose one of the following:

IA Lump Sum Funds Lump Sum IB Lump Sum Funds Ordinary Level Annuity IC Lump sum funds delayed level annuity. ID Ordinary Level Annuity funds lump sum. IE Ordinary Level Annuity funds delayed level annuity. IF Delayed Level Annuity funds delayed level annuity.

IIA1 Bond Standard IIA2 Bond Perpetuity IIB1 Stock Constant Dividend IIB2 Stock Constant Dividend Growth IIB3 Stock Supernormal Growth

IIIA Current rate IIIB YTM IIIC Capital Gain/Los IIID Dividend Yield IIIE Internal Rate of Return (IRR)

IV Alternatives

V Components of Interest (discount) Rates VI Real vs. Nominal