Over the Past Year, You Earned a Nominal Rate of Interest

question 29

Multiple Choice

Over the past year, you earned a nominal rate of interest of 12.5% on your money. The inflation rate was 2.6% over the same period. The exact actual growth rate of your purchasing power was

• A) 9.15%.
• B) 9.90%.
• C) 9.65%.
• D) 10.52%.

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Definitions:

Tax Returns

Official documents filed with tax authorities that report income, expenses, and other pertinent tax information.