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ss7ja [257]
3 years ago
12

Caroline has saved $100,000 for her retirement. She earned 4 percent interest on that money during the year 2013. If the inflati

on rate was 1 percent in 2013, what was Caroline's real interest rate?
Business
1 answer:
dmitriy555 [2]3 years ago
8 0

Answer:

Real rate of interest will be 3 %

Explanation:

We have given Caroline served $100000 for her retirement

Rate earned 4% interest on that money

So nominal rate earned = 4%

We have given inflation rate = 1%

We have to find the real rate of interest

Real rate of interest is given by

Real rate of interest = nominal rate earned - inflation rate

So real rate of interest = 4-1 =3 %

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A cash receipts budget of flying consumers.

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The correct answer is cover the actual production of a good or service.

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8 0
1 year ago
If the fed wants to _______ the money supply, it discourages bank loans.
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I am Lyosha [343]

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