6. A professional golfer goes through a lot of golf balls. She choose to invest her money...
Question:
6. A professional golfer goes through a lot of golf balls. She choose to invest her money during the year and buy all her golf balls at the end of the year. In her current account she has invested $1,000 which earn 5.5% compounded annually. Inflation is expected to be 2% per year.
What is the real interest rate for that account?
6. A professional golfer goes through a lot of golf balls. She choose to invest her money during the year and buy all her golf balls at the end of the year. In her current account she has invested $1,000 which earn 5.5% compounded annually. Inflation is expected to be 2% per year.
What is the real interest rate for that account?
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely