Compute the annual real interest rate

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Reference no: EM131998368

1. Eva will put $5,000 in her tax deferred retirement account each year beginning one year from today and continuing for a total of 25 years. If her investment earns 8.00% per year, how much will she have at the end of 25 years?

Round your answer to the nearest whole dollar.

2. The nominal interest rate is 8.00% per year and the inflation rate is 4.00% per year. Compute the annual real interest rate.

Round your answer to the nearest hundredth of a percent.

Reference no: EM131998368

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