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Assume inflation is 0.2% per month. Would you rather eam a nominal return of 0.75% per month, compounded monthly, or a real retum of 6.5%
Assume inflation is 0.2% per month. Would you rather eam a nominal return of 0.75% per month, compounded monthly, or a real retum of 6.5% APR, compounded annually? (Note: Be careful not to round any intermediate steps less than six decimal places.) The annual rate for the nominal return of 0.75% per month is. (Type your answer in decimal format. Round to six decimal places.) The nominal annual rate for the real return of 6.5 % APR is. (Type your answer in decimal format. Round to six decimal places.) (Select from the drop-down menus.) Based on a comparison of the two rates and the current inflation rate, you would prefer the option over the option. Next
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