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Assume inflation is 0.24% per month. Would you rather eam a nominal retum of 0.72% per month, compounded monthly, or a real return of 6.43%

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Assume inflation is 0.24% per month. Would you rather eam a nominal retum of 0.72% per month, compounded monthly, or a real return of 6.43% APR, compounded annualy? (Note: Be careful not to round any intermediate steps less than six decimal places.) The annual rate for the nominal return of 0.72% per month is (Type your answer in decimal format. Round to six decimal places) The nominal annual rate for the real return of 6.43% 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 The annual rate for the nominal return of 0.72% per month is 1 (Type your answer in decimal format. Round to six decimal places.) The nominal annual rate for the real return of 6.43% 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 real return compounded annually nominal return compounded monthly

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