Question
1. Assume you just deposited $1,000 into a bank account. The current real interest rate is 3%, and inflation is expected to be 6% over
1. Assume you just deposited $1,000 into a bank account. The current real interest rate is 3%, and inflation is expected to be 6% over the next year. What nominal rate would you require from the bank over the next year?The required nominal rate would be %?. (Enter your response rounded to the nearest whole number.)
2. How much money will you have at the end of one year?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
