At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank acco Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was was 306. What was Uncle John's real rate of return over the year? The real return was closest to: ○ A. 38% B. 35.52% C. 37.25% OD. 40%
At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank acco Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was was 306. What was Uncle John's real rate of return over the year? The real return was closest to: ○ A. 38% B. 35.52% C. 37.25% OD. 40%
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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![At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank account. At that time, the
Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was $70,000 and the CPI
was 306. What was Uncle John's real rate of return over the year?
The real return was closest to:
A. 38%
B. 35.52%
C. 37.25%
D. 40%
E. 42.8%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d4d602e-8ca3-4511-9471-2bc9e456bb72%2F0621d236-1f62-4c57-ae96-5e80891f05b7%2Fdfpwyrg_processed.png&w=3840&q=75)
Transcribed Image Text:At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank account. At that time, the
Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was $70,000 and the CPI
was 306. What was Uncle John's real rate of return over the year?
The real return was closest to:
A. 38%
B. 35.52%
C. 37.25%
D. 40%
E. 42.8%
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