You Want to Earn a Real Rate of Return of 3.25

question 39

Multiple Choice

You want to earn a real rate of return of 3.25 percent at a time when the inflation rate is 2.41 percent. What is the approximate nominal rate which you must earn?

• A) 5.42 percent
• B) 5.66 percent
• C) 5.68 percent
• D) 5.74 percent
• E) 5.81 percent

---

Definitions:

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.

SUTA Tax Rate

The state-level tax rate applied to employers to fund state unemployment benefits, varying by state and employer's history with unemployment claims.