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    Fundamentals of Corporate Finance Study Set 12
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    Exam 5: Interest Rates
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    If the Current Inflation Rate Is 4% and You Have
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If the Current Inflation Rate Is 4% and You Have

Question 76

Question 76

Multiple Choice

If the current inflation rate is 4% and you have an investment opportunity that pays 10%,then the real rate of interest on your investment is closest to:


A) 10.0%
B) 14.0%
C) 6.0%
D) 5.8%
E) 4.0%

Correct Answer:

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