At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a...

Transcribed Image Text:

At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank account. At that time, the Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was $70,000 and the CPI was 306. What was Uncle John's real rate of return over the year? The real return was closest to: A. 38% B. 35.52% C. 37.25% D. 40% E. 42.8% At the annual family barbeque, your Uncle John told you that he deposited $50,000 in a bank account. At that time, the Consumer Price Index (CPI) was 300. A year later, the balance in Uncle John's bank account was $70,000 and the CPI was 306. What was Uncle John's real rate of return over the year? The real return was closest to: A. 38% B. 35.52% C. 37.25% D. 40% E. 42.8%