Real rate of return
Problem:
If you earned a rate of return of 8% on your bond investments last year, during that time the inflation rate was 3.68%.
Required:
Question 1: What is your real rate of return? Please show your all workings.
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Abebi, who has just celebrated her 28th birthday, will retire on her 58th birthday, and she has just set up a retirement plan to pay her income starting on her retirement day, and to continue paying for 19 more years.
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What will your monthly payment be? Make clear comprehensively and show all workings.
What is your real rate of return? Please show your all workings.
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