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Rudy deposits $25,000 into a savings account. Rudy doesnt make any deposits or withdrawals from the account, but a year later, his account balance has
Rudy deposits $25,000 into a savings account. Rudy doesnt make any deposits or withdrawals from the account, but a year later, his account balance has increased to $25,250. Inflation for the period is 1.5%. Which of the following statements about Rudys savings account is CORRECT? | ||
a) | Rudys nominal rate of return is -0.50%. | |
b) | Rudys real rate of return is 1%. | |
c) | Rudy has earned a capital gain of $250. | |
d) | Rudy has a liquid investment. |
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