Question
We suggest you invest in a 3-year progressive rate investment certificate. The interest rate attached to it (compounded annually) increases each year. The interest rates
We suggest you invest in a 3-year progressive rate investment certificate. The interest rate attached to it (compounded annually) increases each year. The interest rates offered are as follows, for each year:
- Year 1: rate of 5.00%;
- Year 2: rate of 6.00%;
- Year 3: rate of 7.00%.
Assuming an average annual inflation rate of 2% over the next 10 years, what will be the average real annual return after three years associated with this investment?
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Dynamic Business Law
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs
6th Edition
1260733971, 978-1260733976
