Calculate the inflation-adjusted interest rate when the annualized inflation rate is 7% per year and the real interest rate is 4% per year.

As part of modernizing the Kennesaw State University campus, the cost of constructing new digital signs all over campus five years ago was $600,000. A KSU civil engineer designing signs that are almost exactly the same estimates the cost today will be $700,000. If the cost had increased only by the inflation rate over the five years, what was the actual inflation rate per year? (Choose the closest answer) 5.61% 3.13% 6.96% 4.86%

"An annuity provides for 15 consecutive end-of-year payments of $73,000 in actual dollars. The general inflation rate is 5% annually, and the inflation-free interest rate is 5% annually. What is the present value of the annuity after considering the effects of inflation?"

You invested a sum of money that your grandparents gave you six years ago when you graduated from high school. The rate of inflation since then has been 5.2% per year. You almost forgot about this investment until you received a statement in the mail, and you noticed a return of $5,938.11 on your original investment. You calculated that your real rate of return on the initial investment had been 9.8%. What was the size of your original investment?