You Plan to Make Annual Deposits into a Bank Account

question 110

Multiple Choice

You plan to make annual deposits into a bank account that pays a 5.00% nominal annual rate.You think inflation will amount to 2.50% per year.What is the expected annual real rate at which your money will grow?

• A)1.98%
• B)2.20%
• C)2.44%
• D)2.68%

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Definitions:

Newborns

Refer to infants from birth to about two months of age, during which they undergo rapid physical and cognitive development.

Three-Dimensional Patterns

Structured arrangements or designs that have depth, height, and width, giving them a sense of volume or space.

Recessive

Referring to a gene that only influences the expression of a trait when paired with an identical gene.

Dominant

Referring to the most powerful, influential, or significant element or gene in a context or system.