Andre's financial planner told him that, to meet his retirement goals, he needs to earn a real rate of return of 4% each year. In the year just ended, inflation jumped unexpectedly to 3.5%. At the same time, Andre's tax-sheltered RRSP account earned 7%. Andre thought he has exceeded his required rate of return. 

What is Andre's real rate of return on his RRSP account for the year just ended?

Answer rating: 100% (QA)

Nominal rate of return 7 Inflation rate 35 Real ... View the full answer