Over the Past Year You Earned a Nominal Rate of Interest

question 4

Multiple Choice

Over the past year you earned a nominal rate of interest of 8 percent on your money.The inflation rate was 3.5 percent over the same period.The exact actual growth rate of your purchasing power was

• A)15.55%.
• B)4.35%.
• C)5.02%.
• D)4.81%.
• E)15.04%.

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