What nominal interest rate must they earn if inflation rate

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1. If investors are to earn a 2.9% real interest rate, what nominal interest rate must they earn if the inflation rate is: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

2. You have ?$100,000 to donate to your college. The? college's discount rate is 5?%. You donate the money? today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment? be?

The annual scholarship payment will be ________? (Round to the nearest? cent.)

Reference no: EM131974215

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