Question: how to solve this??? Assume the inflation rate is 3.39% APR, compounded annually. Would you rather earn a nominal return of 4.76% APR, compounded semiannually,
Assume the inflation rate is 3.39% APR, compounded annually. Would you rather earn a nominal return of 4.76% APR, compounded semiannually, or a real return of 2.19% APR, compounded quarterly? (Note: Be careful not to round any intermediate steps less than six decimal places.) To put these on the same basis, you must convert them both to nominal EARS The EAR for 4.76% APR, compounded semiannually is . (Type your answer in decimal format. Round to six decimal places.) (Type your answer in decimal format. Round to six decimal places.) The nominal EAR for a real 2.19% APR, compounded quarterly is I You would rather earn (Select from the drop-down menu.) the real rate APR compounded quarterly nominal rate APR, compounded semiannually Enter your answer in each of the answer boxes. Save for Later
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
