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12345 [234]
3 years ago
13

Veronica has received a $3,000 gift and is looking for a bank to start a savings account. Which option would be the best for her

if the current inflation rate is 2.5%?
A. bank that offers 4% interest

B. bank that offers 3% interest

C .bank that offers 2.5% interest

D. bank that offers 3.5% interest
Mathematics
2 answers:
kondaur [170]3 years ago
8 0

Answer:

A

Step-by-step explanation:

You are looking for the highest real interest rate, which is the nominal rate minus the inflation rate. With that being said, the lowest interest rate is 2.5%, which wouldn't make her anything. However, the 4% interest rate yields 1.5% real interest, making it the best option.

Anarel [89]3 years ago
7 0

Answer:

B Is your answer

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