The real return is the difference between the nominal and actual rate of inflation. Therefore, the real return revived by Luigi will be 6%.
<u>Given</u><u> </u><u>the</u><u> </u><u>Parameters</u><u> </u><u>:</u>
- <em>Nominal rate = 7% </em>
- <em>Actual rate of inflation = 1%</em>
<em>Real return = Nominal rate - Actual rate of return </em>
Real Return = 7% - 1% = 6%
Therefore, the real return on Luigi's money would be 6%
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I think its Gillian. Look it up in case
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Answer: .3 or 3/10
Explanation: The probability that her first answer is correct is 2/5. Since she got the first guess correct, now there is only 1 correct answer out of 4. There is a 3/4 chance she will get the next problem wrong
So: 2/5 x 3/4 = .3
