What will the investments be worth at year ten, Finance Basics

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What will the investments be worth at year ten

Problem

Kate currently has £50,000 of stock market investments. She thinks that she will be able to generate a return of 5% pa on the investments over the next 10 years. What will the investments be worth at year 10? And, if inflation is forecast to be 3% pa, how much better off will she be in real (buying power) terms at year 10?

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