Question
Assume inflation is 0.2% per month. Would you rather earn a nominal return of 0.75% per month, or a real return of 6.5% APR, compounded
Assume inflation is 0.2% per month. Would you rather earn a nominal return of 0.75% per month, or a real return of 6.5% APR, compounded annually?
Use the following equation:
Real Rate = Nominal Rate - Inflation Rate / 1 + Inflation Rate
| Nominal Rate - Inflation rate |
|
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Commodity Trading Mistakes
Authors: Andrew Abraham
1st Edition
1492389366, 978-1492389361
