Nominal return =.443
Deposit at end of year = 20000*(1.443) =28860
Inflation rate =0.3
Deposit adjusted for inflation= 28860/1.3= 22200
Real return = (22200-20000)/20000=2200/20000=22/200=11/100=0.11=11%
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?