Question
A commentator on the financial markets notes that interest rates are steady at 6.25%, inflation has been 2.5% and you anticipate inflation rising to 3.25%.
A commentator on the financial markets notes that interest rates are steady at 6.25%, inflation has been 2.5% and you anticipate inflation rising to 3.25%. Given this, the real rate of return is closest to:
| A. | 3.75%. | |
| B. | 3.00%. | |
| C. | 8.75%. |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
