I assume nominal interest is 5 percent and inflation is 2.5 percent.
Not exact matches
Holding an individual bond to maturity will result in the return of principal (
assuming the bond issuer doesn't default), but those
nominal dollars will be worth less with inflation and during periods of higher
interest rates.
GAO also calculated the IRA accumulation
assuming the
nominal historical
interest rates as reported in the Social Security Trustees reports.
So, A = 500000 (1 +0.036 / 365) ^ (30), or 501,481.57, or an
interest of 1481.57,
assuming the 3.6 % is the annual
nominal interest rate and it is compounded daily.