You Want to Earn a Real Rate of Return of 4.00

question 34

Multiple Choice

You want to earn a real rate of return of 4.00% at a time when the inflation rate is 2.05%. What is the approximate nominal rate that you must earn?

• A)5.75%
• B)5.95%
• C)6.05%
• D)6.15%
• E)6.25%