How would the purchasing power of your savings have changed

Assignment Help Financial Management

Reference no: EM131915212

In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? What was the real interest rate in 1975?

Real rate of interest in 1975 was %. How would the purchasing power of your savings have changed over the year?

The purchasing power over that year did the following:

A. Increased by 4.45%

B. Declined by 3.96%

C. Increased by 3.95%

D. Declined by 4.45%

Reference no: EM131915212

Questions Cloud

What are the hallmarks of a good business code of conduct : What are the hallmarks of a good business code of conduct? Are conflicts of interest the same as self-dealing

What is the relationship between risk and return : First, what is "risk" in business? How can we measure risk? Next, what is the relationship between risk and return?

How much is the carrying amount of the land : Moon also owns some land, which was purchased at a cost of $5,000,000 on 30 June 2012. How much is the carrying amount of the land

Likely to contribute to capital project analysis failure : Synthesize your one-paragraph position on what 3-5 specific factors you believe most likely to contribute to capital project analysis failure.

How would the purchasing power of your savings have changed : Real rate of interest in 1975 was %. How would the purchasing power of your savings have changed over the year?

What is post merger value of operations : What is the post merger value of operations?

Why do you think heat is frequently used when styling hair : Human hair is composed of a protein, keratin. Considering protein structures, why do you think heat is frequently used when styling hair?

How much will this trust be worth in the year 2020 : In 1960, your grandmother put $1000 into a special trust to be paid to a future grandchild (you) 60 years later, in the year 2020.

What is the maximum upside and downside : What is the maximum upside (gain) and downside (loss)

User Account

All Pages