Multiple Choice
What is the expected real rate of interest for an account that offers a 12 percent nominal rate of return when the rate of inflation is 6 percent annually?
A) 5.00 percent
B) 5.66 percent
C) 6.00 percent
D) 9.46 percent 1 + real rate = 1.12/1.06
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q11: What is the relationship between an annually
Q26: When money is invested at compound interest,the
Q76: Show numerically that a savings account with
Q79: Assume the total expense for your current
Q80: How many monthly payments remain to be
Q82: If you were a bank which would
Q83: What is the annually compounded rate of
Q84: What is the discount factor for $1
Q85: How long must one wait (to the
Q86: Explain the difference between a regular annuity