Calculate the real dollar rate of return on a 5,000 pound sterling deposit in a London bank in a year when the interest

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Calculate The Real Dollar Rate Of Return On A 5 000 Pound Sterling Deposit In A London Bank In A Year When The Interest 1 (103.76 KiB) Viewed 66 times

Calculate the real dollar rate of return on a 5,000 pound sterling deposit in a London bank in a year when the interest rate on pounds is 8 percent, the dollar/pound exchange rate moves from $1.42 per pound to $1.24 per pound, and the dollar prices increase by 5 percent. The real rate of return will be percent (Enter your response as a percentage rounded to one decimal place.)