Over the Past Year You Earned a Nominal Rate of Interest

Multiple Choice

Over the past year you earned a nominal rate of interest of 12.5 percent on your money.The inflation rate was 2.6 percent over the same period.The exact actual growth rate of your purchasing power was

A) 9.15%.
B) 9.90%.
C) 9.65%.
D) 10.52%.
E) none of the above.