4. land after 3 years for $160,000. Assume that your capital gains tax is 15%. What is the average inflation rate over this time period if your after-tax, inflation adjusted rate of return on this investment is 4%? You bought some land for $100,000 for investment purposes. You sold the

5. Funding the nest egg shortfall Determining Retirement Shortfall Yuan and Alex have 40 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,750.00 per year. Use the following tables to answer the questions about future value interest factors. Interest Factors-Future Value Interest Factors-Future Value of an Annuity Periods 3.00% 5.00% 6.00% 8.00% 9.00% 5.600 1.810 2.090 3.386 4.290 2.653 3.210 4.661 6.848 8.620 2.420 4.322 5.740 10.062 13.260 20.410 2.810 5.516 7.690 14.785 20 25 30 35 40 3.260 7.040 10 280 21 724 31 410 = The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Wu, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by…

Explain how high inflation in a booming real estate market could benefit an engineer who sells a home 5 years after she buys it.

If inflation has been running at 2.2% per year and a washing machine costs $460 today, what would it hace cost three years ago? What is the interest rate per period? i=

Henrique is a baseball fan and attends several games per season. His expenses per season are listed in the table below: |Year 1 |Year 2 5 Baseball Tickets Jersey Food Transport $500 $600 |$100 $150 $50 |$120 $150 $80 Calculate the inflation rate for Henrique's baseball season between year 1 and 2. 18.5% O0.18% 15.8% O1.6%