Solved

A Year Ago, You Invested $2,500 in a Savings Account

Question 30

Multiple Choice

A year ago, you invested $2,500 in a savings account that pays an annual interest rate of 3.5%. What is your approximate annual real rate of return if the rate of inflation was 5.5% over the year?


A) 0.9%
B) −2.0%
C) 5.9%
D) 3.4%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q25: You have been given this probability

Q26: Ceteris paribus, a decrease in the demand

Q27: If a portfolio had a return of

Q28: If an investment provides a 1.25% return

Q29: Over the past year, you earned a

Q31: If the Federal Reserve lowers the Fed

Q32: The most common measure of loss associated

Q33: When a distribution is positively skewed,<br>A) standard

Q34: When assessing tail risk by looking at

Q35: When assessing tail risk by looking at