Business Finance
How to solve this question? Practice Final Exam 3.2 #1

Question Description

If the price of a shmoo increases at a simple annual rate of 10%, while at the same time (one year) a $2000 bank deposit increases to $2860, then the SIMPLE ONE-YEAR REAL return from the deposit will be?


Final Answer

Deposit at end of I year =2860

Inflation =10%

Deposit at end of 1 year adjusted for inflation of 10% =2860/1.1=2600

Return =(2600-2000)/2000=30

madhavant (2757)
UT Austin

Top quality work from this tutor! I’ll be back!

It’s my second time using SP and the work has been great back to back :) The one and only resource on the Interwebs for the work that needs to be done!

Thanks, good work


Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors