Question: Assume intation is 0.24% per month Would you rather eam a nominat return of 0.72% per month, compounded monthly, or a real retum of 6.43%

 Assume intation is 0.24% per month Would you rather eam a

Assume intation is 0.24% per month Would you rather eam a nominat return of 0.72% per month, compounded monthly, or a real retum of 6.43% APR, compounded annually? (Note: Be careful not to round any intermediate steps loss than six decimal places) The annual rate for the nominal return of 0.72% per month is . (Type your answer in decimal format Round to six decimal places.) The nominal annual rate for the real return of 6.43% APR is Type your answer in decimal format. Round to six decimal places) (Select from the drop-down menus.) Based on a comparison of the two rates and the current inflation rate, you would prefer the option v option over the nominal return compounded monthly real return compounded annually

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!