ou currently have $200 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 2% pa which is the expected growth rate in the apple price. All rates are given as effective annual rates. Which of the below statements is NOT correct? All answer options are rounded to 6 decimal places. Question 13 Select one: a. In 1 year the nominal apple price will be $1.02. b. The real growth rate in the apple price is expected to be 2.941177% pa. c. In 1 year your money in the bank will be worth $210 in nominal terms. d. In 1 year your money in the bank will be worth 205.882353 apples. e. The real bank interest rate is 2.941177% pa.
ou currently have $200 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 2% pa which is the expected growth rate in the apple price. All rates are given as effective annual rates. Which of the below statements is NOT correct? All answer options are rounded to 6 decimal places. Question 13 Select one: a. In 1 year the nominal apple price will be $1.02. b. The real growth rate in the apple price is expected to be 2.941177% pa. c. In 1 year your money in the bank will be worth $210 in nominal terms. d. In 1 year your money in the bank will be worth 205.882353 apples. e. The real bank interest rate is 2.941177% pa.
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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You currently have $200 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 2% pa which is the expected growth rate in the apple price. All rates are given as effective annual rates. Which of the below statements is NOT correct? All answer options are rounded to 6 decimal places. Question 13 Select one:
a. In 1 year the nominal apple price will be $1.02.
b. The real growth rate in the apple price is expected to be 2.941177% pa.
c. In 1 year your money in the bank will be worth $210 in nominal terms.
d. In 1 year your money in the bank will be worth 205.882353 apples.
e. The real bank interest rate is 2.941177% pa.
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