In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? (Note: Be careful not to round any intermediate steps less than six decimal places.) What was the real interest rate in 1975? Real rate of interest in 1975 was %. (Round to two decimal places.) How would the purchasing power of your savings have changed over the year? The purchasing power over that year did the following: (Select the best choice below.) O A. Increased by 3.96% B. Increased by 4.45% OC. Declined by 3.96% O D. Declined by 4.45%
In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? (Note: Be careful not to round any intermediate steps less than six decimal places.) What was the real interest rate in 1975? Real rate of interest in 1975 was %. (Round to two decimal places.) How would the purchasing power of your savings have changed over the year? The purchasing power over that year did the following: (Select the best choice below.) O A. Increased by 3.96% B. Increased by 4.45% OC. Declined by 3.96% O D. Declined by 4.45%
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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In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? (Note: Be careful not to round any intermediate steps less than six decimal places.)
What was the real interest rate in 1975?
The real rate of interest in 1975 was ______%. (Round to two decimal places.)
How would the purchasing power of your savings have changed over the year?
The purchasing power over that year did the following: (Select the best choice below.)
Transcribed Image Text:In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing
power of your savings have changed over the year? (Note: Be careful not to round any intermediate steps less than six decimal places.)
AS
What was the real interest rate in 1975?
Real rate of interest in 1975 was
%. (Round to two decimal places.)
How would the purchasing power of your savings have changed over the year?
The purchasing power over that year did the following: (Select the best choice below.)
O A. Increased by 3.96%
O B. Increased by 4.45%
O C. Declined by 3.96%
O D. Declined by 4.45%
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