Real interest rate of interest earned by albert in each

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Q. On January 1, 2009, Albert invested $1000 at 6 percent interest every year for three years. The CPI on Jan 1, 2009 stood at 100. On Jan 1 2010, the CPI was 105, Jan 1, 2011 it was 110, On Jan 1 2012, the day Albert's investment matured, and the CPI was 118. Find out the real interest rate of interest earned by Albert in each of the three years also his total real return over the three year period. Assume the interest earnings are reinvested each year also they earn interest.

Reference no: EM1322829

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