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devlian [24]
3 years ago
10

If a person has money invested at 9 percent and the rate of inflation is 5 percent, how much return are they actually making on

their investment?
Business
2 answers:
madreJ [45]3 years ago
8 0

Answer:

4%

Explanation:

It is given that a person has money invested at 9 percent and the rate of inflation is 5 percent.

We need to find the actual interest rate.

Real interest rate = Rate of interest - Rate of inflation

Substitute the given values in the above formula to find the actual interest rate.

Real interest rate = 9% - 5%

Real interest rate = 4%

Therefore, the real interest rate on their investment is 4%.

makvit [3.9K]3 years ago
7 0

Answer:

1. An index determined by measuring the price of standard goods brought by urban consumers.

2. Producers raise prices to meet increased cost.

3.  Demand-pull theory.

4. It rises

5. 4 percent.

Explanation:

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A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the fou
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What role can the private sector play in poverty alleviation?
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In what ways do people cope with the problem of scarcity (5 sentence)​
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