7 Celia is planning to invest $20000 in the United States. The inflation rate is projected to be 2.1%. She found an investment scheme in a bank that pays a nominal annual interest rate of 2.4% compounded monthly. a Determine the real interest rate she will receive next year. b Determine the worth of her investment alter one year.

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7 Celia is planning to invest $20000 in the
United States. The inflation rate is projected
to be 2.1%. She found an investment
scheme in a bank that pays a nominal annual
interest rate of 2.4% compounded monthly.
a Determine the real interest rate she will
receive next year.
b Determine the worth of her investment
alter one year.
Transcribed Image Text:7 Celia is planning to invest $20000 in the United States. The inflation rate is projected to be 2.1%. She found an investment scheme in a bank that pays a nominal annual interest rate of 2.4% compounded monthly. a Determine the real interest rate she will receive next year. b Determine the worth of her investment alter one year.
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