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NNADVOKAT [17]
3 years ago
14

An investment had a nominal return of 9.7 percent last year. The inflation rate was 2.7 percent. What was the real return on the

investment
Business
1 answer:
lana [24]3 years ago
4 0

Answer:

6.816%

Explanation:

The real rate of return is nominal rate of return less inflation rate

(1 + nominal rate ) = (1 + real rate ) x (1 + inflation rate)

= 1.097 = real rate x 1.027 = 1.06816 - 1 = 0.06816 = 6.816%

I hope my answer helps you

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In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock d
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3 years ago
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Read 2 more answers
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