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42.A year ago, you invested $2,500 in a savings account that pays an annual interest rate of 2.5%.What is your approximate annual real rate ofreturn
42.A year ago, you invested $2,500 in a savings account that pays an annual interest rate of
2.5%.What is your approximate annual real rate ofreturn ifthe rate of inflation was 3.4% over the year? A.0.9%. B.-0.9%. C.5.9%. D.3.4%.
E. none of the above.
2.5%-3.4%=-0.9%.
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