Answer:
option B
Step-by-step explanation:
given,
3-month T-bill currently yields = 3%
customer price have been rising = 2% rate
Ai Lun's estimate of the real rate = ?
real rate return
=
=
=
=
= 0.0098
= 0.98 % ≅ 1 %
hence, the correct answer is option B
Answer:
$2,851.80
Step-by-step explanation:
Lets use the compound interest formula to solve:
<em>P = initial balance</em>
<em>r = interest rate (decimal)</em>
<em>n = number of times compounded annually</em>
<em>t = time</em>
First, change 1.1% into a decimal:
1.1% -> -> 0.011
Next, plug the values into the equation:
She will have $2,851.80 after 5 years.