1. Discuss in detail one impact of inflation on either personal finance or on the economy in general.
2. Greta Garbo wants to accumulate $12,000,000 by the end of 12 years. The annual interest rate is 7% per annum. How much will she have to invest to achieve her goal? (Complete using Excel and import solution)
3. Consider an investment that pays off $550 or $900 per $1,000 invested with equal probability. Suppose you have $1,000 but are willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the investment if you borrowed an additional $1,000 and invested a total of $2,000? What if you borrowed $2,000 to invest a total of $3,000?