Your investments increased in value by 14.2 percent last year but your purchasing power increased by only 5.4 percent. What was the approximate inflation rate?
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- The value of your investment increased by 9.77% last year, and your purchasing power decreased by 1.22%. What was the approximate inflation rate?Your investments increased in value by 16.3 percent last year, but your purchasing power increased by only 7.5 percent What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)An investment had a nominal return of 11.2 percent last year. If the real return on investment was only 7.5 percent, what was the inflation rate for the year?
- Say you own an asset that had a total return last year of 10.4 percent. If the inflation rate last year was 4.3 percent, what was your real return?2. If the bank paid me 9.98% interest per year and if my actual return (the increase in my purchasing power) was only 5.25%, what was the inflation rate during the year? (Show Work)In 1975, interest rates were 7.83% and the rate of inflation was 12.42% 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?
- If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP.An investment had a nominal return of 10.6percent last year. If the real return on investment was only 6.3 percent, what was the inflation rate for the year? a. 17.57% b. 3.89% c. 10.73% d. 4.49%In 2007, interest rates were about 4.5% and inflation was about 2.8%. What was the real interest rate in 2007?
- After a 1 year investment you receive 7.4% interest (nominal) from your bank. However, looking at how prices have changed, you soon realize that the real rate of interest was actually 3.4%. How much was inflation during that year? Enter your answer as a percentage, rounded to 2 decimals, and without the percentage sign ('%'). For example, if your answer is 0.02345, then enter 2.35You know that the stated rate of return is not what you really earned. If the inflation rate last year was 4.5%, and your investment had a stated rate of 18%, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return %An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the total real return on this investment will be only 7.4 percent. What does Alex believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Inflation rate %