k to Assignment Attempts Keep the Highest / 25 4. Choz Financial Planning Exercise 13 eBook Chapter 2 Financial Planning Exercise 13 Inflation and interest rates Lillian Coleman is 21 years old and has just graduated from college. In considering the retirement Investing options available at her new job, she is thinking about the long-term effects of Inflation, Help her by answering the following related questions: a. Explain the effect of long-term inflation on meeting retirement financial planning goals. The input in the box below will not be graded, but may be reviewed and considered by your instructor b. If long-term inflation is expected to average 2 percent per year and you expect a long-term Investment return of 7 percent per year, what is Lillian's long-term expected real rate of return (adjusted for inflation)? Be sure to consider the important impact of compounding