26. Over the past 10 years, the average inflation rate in the United States was 1.8 percent per year. Due to large gover

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26. Over the past 10 years, the average inflation rate in theUnited States was 1.8 percent per year. Due tolarge government deficits related to COVID, the Russian invasion ofUkraine, and projected deficitsfor new proposed social programs, the current inflation rate is 8.7percent per year. If the inflation rate(i.e., the annual price increase) of a loaf of bread (assume a loafof bread now costs $2.49), what willbe the DIFFERENCE in the price of a loaf of bread 10 years fromtoday (assuming an annual inflationrate of 8.7 percent instead of 1.8 percent)?
27. What is the future value exactly one year after the lastdeposit of 40 annual deposits of $2,000 per year(first deposit to be made today) given an interest rate of 11.5%p.a.?
28. Assume that Justin plans to deposit $15,000 into an accountexactly 7 years from today. How muchwill be in my account at the end of year 50 (i.e., 50 years fromtoday), assuming that Justin’s accountpays interest of 10.8% p.a.?
29. Krammer Bank offers a CD (i.e., certificate of deposit) thatpays 2.95% p.a., but with monthlycompounding. If Lebron deposits $20,000 into this account today,how much will he have in his accountin exactly 28 years?
30. If the real rate of interest is 1.75% and if the expectedinflation rate is 8.65%, what is the present valueof $50,000 to be received exactly 8 years from today?31. Kiyomi wants to buy a new car. The dealership offers her achoice of paying $600 per month for 5years (with the first payment due exactly 13 months from today) orpaying $27,000.00 today (whichKiyomi will borrow from her bank). What annual interest rate wouldmake Kiyomi indifferent betweenthese two options?
32. Arjun plans to retire on his 65th birthday. However, heplans to work part-time until he turns 72. Duringthese years of part-time work, he will neither make deposits to nortake withdrawals from his retirementaccount. Arjun will fully retire on his 72nd birthday. Assumingthat Arjun can earn 7.8% p.a. on allmoney invested in his retirement account, what annual amount,starting on his 34th birthday, will Arjunhave to save in order to have $2,500,000 in his account on his 72ndbirthday?
33. What is the effective annual rate (EAR) of 8.17% p.a., butwith daily compounding (assume 365 daysper year)?
34. You expect to deposit the following cash flows at the end ofyears 1 through 5, $1,000; $4,000; $9,000;$5,000; and $2,000 respectively. What is the future account valueat the end of year 20 if you can earn10% p.a., compounded continuously?
35. Dwayne currently has $126,150 in an account that pays 8.25%p.a. Dwayne plans to withdraw $25,400from his account at the end of years 2, 4, 6, 8 and 10 and he plansto deposit $14,800 into his accountat the end of years 3, 5, 7, 9 and 11. If, after the year 11deposit, Dwayne does not make any furtherdeposits or withdrawals, and if his account earns 8.25% p.a. overthe entire time period, how much willDwayne have in his account exactly 25 years from today?