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lions [1.4K]
3 years ago
14

An investment had a nominal return of 11.1 percent last year. If the real return on the investment was only 7.3 percent, what wa

s the inflation rate for the year
Business
1 answer:
nordsb [41]3 years ago
7 0

Answer:

inflation rate= 3.8%

Explanation:

Giving the following information:

Nominal return= 11.1 percent

Real return= 7.3 percent

<u>The real return on investments is the difference between the nominal return and the inflation rate.</u>

Real return= nominal return - inflation rate

inflation rate= nominal return - real return

inflation rate= 11.1 - 7.3

inflation rate= 3.8%

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