Ask Question
BusinessBusiness
16 April, 05:14

An investment offers a total return of 13.8 percent over the coming year. You believe the total real return will be only 9.4 percent. What do you believe the exact inflation rate will be for the next year?

+5
Answers (1)
  1. 16 April, 08:27
    0
    you would believe that the exact inflation rate will be 4.02% for the next year.

    Explanation:

    exact inflation rate = (1 + nominal return) / (1 + real return) - 1

    = 1.138/1.094 - 1

    = 4.02%

    Therefore, you would believe that the exact inflation rate will be 4.02% for the next year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An investment offers a total return of 13.8 percent over the coming year. You believe the total real return will be only 9.4 percent. What ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When can billers and coders be held personally responsible under the law for billing issues
Answers (1)
On October 1, 2014, Mann Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life.
Answers (1)
The money multiplier is greater than one because banks: hold the entire amount of deposits as reserves. hold only a fraction of deposits as reserves. do not lend any of deposits out as loans. borrow loans from the Federal Reserve.
Answers (1)
Credit card companies maintain staffs of professionals whose primary responsibility is to monitor the activity on cardholders' accounts to spot potential fraudulent purchases or stolen cards.
Answers (1)
A feasibility study is conducted to determine: if funds are available for the proposed project the scope of the problem user requirements for the proposed system if outsourcing might solve this problem
Answers (1)
New Questions in Business
What term perfectly describes the a slowdown in the rate of increase in the consumer price index?
Answers (1)
Approximately what percentage of the u. s. public debt is held by foreign individuals and institutions (2015) ?
Answers (1)
Meeting others through volunteer work is the most common way people expand their network.
Answers (1)
Explain the natural and necessary shifts of resources in a market economy.
Answers (1)
In a pure market economy, the government controls most actions. A. True False
Answers (2)
Home » Business » An investment offers a total return of 13.8 percent over the coming year. You believe the total real return will be only 9.4 percent. What do you believe the exact inflation rate will be for the next year?
Sign Up Forgot Password?