A Year Ago, You Invested $1,000 in a Savings Account

Multiple Choice

A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 4.3%. What is your approximate annual real rate of return if the rate of inflation was 3% over the year?

A) 4.3%
B) −1.3%
C) 7.3%
D) 3%
E) None of the options.