Good news: You will almost certainly be a millionaire by the time you retire in 50 years.

Question:

Good news: You will almost certainly be a millionaire by the time you retire in 50 years. Bad news: The inflation rate over your lifetime will average about 3%.
a. What will be the real value of $1 million by the time you retire in terms of today's dollars?
b. What real (in today's dollars) will $1 million support if the real interest rate at retirement is 2% and the must last for 20 years?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...