Determine purchasing power increase

Reference no: EM1347608

Last year, you earned a nominal rate of return of 9.25 percent on your bond investments. During that time, the inflation rate was 2.45 percent. How much did your purchasing power increase (real rate) ?
Answer
7.75 percent
7.25 percent
5.71 percent
6.64 percent
12.41 percent

Reference no: EM1347608

Questions Cloud

Which combination of fiscal policy actions severe demand : Which combination of fiscal policy actions would most contractionary for an economy experiencing severe demand-pull inflation.

Find out the heat required to melt all the ice : A 36 g ball is fired horizontally with initial speed v_0 toward a 110 g ball that is hanging motionless from a 1.1 m-long string. The balls undergo a head-on, perfectly elastic collision, after which 110 g ball swings out to a maximum angle theta_..

Simid sports-production budget : Near end of 2011, the management of Simid Sports Co., merchandising company, prepared the following estimated balance sheet for December 31, 2011: Simid Sports' single product is bought for $30 per unit and resold for $60 per unit.

Show the maslows hierarchy of needs : Maslow Vs Herzberg - Maslow's Hierarchy of Needs or Herzberg's Two-Factor Theory

Determine purchasing power increase : Past year, you received a nominal rate of return of 9.25% on your bond investments. During that time, inflation rate was 2.45%.

Finding equation has no solutions mod m : Let the equation ax = b mod m, where x is unknown and a, b and m are given. Illustrate that this equation has either no solutions mod m, or d solutions mod m.

Developing budget for business-framed botanical prints : Find out the breakeven point in units and dollars. Also, find out the number of units and dollars which need to be sold to make a target profit of $5,000 month. Recognize what types of trends you must be aware of in the industry and who the primary..

Expectancy theory and motivation : Expectancy Theory and Motivation - If your followers know they can perform required tasks and believe they will be rewarded for a good job but don't care for the rewards you can provide

Illustrate what are some of the damaging effects deflation : Illustrate what are some of the damaging effects deflation has on an economy. Elucidate what would be a monetary policy prescription to reduce or eliminate deflation.

User Account

All Pages