If investors receive a 6% interest rate on their bank deposits, what real interest rate will they

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If investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is zero? 3%? 6%?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:11 AM

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If investors receive an 8% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is a. 0% b. 3% c. 6%
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If investors receive a 6% interest rate on their bank deposits, what real interest rate will they

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Fundamentals of Corporate Finance

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