Multiple Choice
You plan to make annual deposits into a bank account that pays a 5.00% nominal annual rate.You think inflation will amount to 2.50% per year.What is the expected annual real rate at which your money will grow?
A) 1.98%
B) 2.20%
C) 2.44%
D) 2.68%
Correct Answer:
Verified
Correct Answer:
Verified
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