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slega [8]
2 years ago
12

An investment had a nominal return of 10.7 percent last year. If the real return on the investment was only 6.5 percent, what wa

s the inflation rate for the year?
Business
1 answer:
densk [106]2 years ago
8 0

Answer:

(1+0.103) =(1+0.057)(1+ Inflation rate)

1.103 =1.057 * (1+ Inflation rate)

1.103/1.057 = 1+ Inflation rate

1.0435 = 1+ inflation rate

Inflation rate = 0.0435 i.e. 4.35%

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