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Use the information presented below to answer questions 4345. On 1 October 1929, Sarah made a fixed term deposit with her bank at a simple
Use the information presented below to answer questions 4345. On 1 October 1929, Sarah made a fixed term deposit with her bank at a simple interest rate of 10% per annum for 2 years when the CPI was 150.48. At the end of the second year, on 30 September 1931, the CPI was 126.93 Question 43 What is the total unadjusted rate of return of the deposit over the 2-year period? [2 marks] Question 44 What is the percentage change in prices? [ 2 marks] Question 45 What is the 'real' rate of return of the deposit (as of 1 October 1929)? [2 marks]
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