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  3. Study Set
    Corporate Finance
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    Exam 5: Interest Rates
  5. Question
    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 16

Question 16

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%.

Correct Answer:

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