1. (real and nominal rates) You have been depositing $250 per month in your 401k account for exactly 10 years. The current value is $65,000. What is the annualized nominal return (effective annual rate) on your investment? If the inflation rate has averaged 6% over that time period, what is your annual real rate of return.
2. A bank has interest income of $55 million, interest expense of $25 million, has a PLL $5 million, has net noninterest income of -$7 million and pays taxes of 34%. If the average assets are $450 million what is the bank's ROAA?
A) 4.00%
B) 3.65%
C) 2.64%
D) 1.98%
E) 1.26%