In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States.

Question:

In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States.

What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year?

Appendix

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

Question Posted: