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scoundrel [369]
3 years ago
8

What nominal return was received by an investor when inflation averaged 3.46% and the real rate of return was 2.5%

Business
1 answer:
Colt1911 [192]3 years ago
7 0

Answer:

Nominal rate of return= 0.0596 = 5.96%

Explanation:

Giving the following information:

Inflation averaged 3.46%

The real rate of return was 2.5%

<u>To calculate the nominal rate of return, we need to use the following formula:</u>

Real rate of return= nominal rate of return - inflation rate

Nominal rate of return= real rate of retunr + infaltion rate

Nominal rate of return= 0.0346 + 0.025

Nominal rate of return= 0.0596 = 5.96%

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