A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If the current rate of inflation is 1.7%, what is the real rate of return on the investment? Round to the nearest hundredth of a percent.
A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If the current rate of inflation is 1.7%, what is the real rate of return on the investment? Round to the nearest hundredth of a percent.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If the current rate of inflation is 1.7%, what is the real rate of return on the investment ? Round to the nearest hundredth of a percent.
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