You owned an investment that returned 12% over the last year. According to the latest Consumer Price Index (CPI) numbers, inflation was 3% over the same period. What was your exact real rate of return (i.e., what was your change in purchasing power for the money in the investment)? LO3

15.00%

8.74%

9.00%

8.929%

You are looking for an investment that will return a real rate of 6% over the next year. If you expect inflation to be 3% over the same period, what nominal return must the investment offer so that you earn a real rate of 6%? LO3

3.00%

8.56%

9.00%

9.18%

You would like to have $1,000,000 saved for retirement by your 65th birthday. You turned 21 today and plan to save $313.14 each month, starting at the end of this month. What APR must you earn to reach your goal? LO2

7.82%

6.69%

8.90%

8.31%