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Assume inflation is 0.25% per month. Would you rather earn a nominal return of 0.71% per month, compounded monthly, or a
Posted: Sat Nov 27, 2021 5:35 pm
by answerhappygod
- Assume Inflation Is 0 25 Per Month Would You Rather Earn A Nominal Return Of 0 71 Per Month Compounded Monthly Or A 1 (27.56 KiB) Viewed 85 times
Assume inflation is 0.25% per month. Would you rather earn a nominal return of 0.71% per month, compounded monthly, or a real return of 6.5% APR, compounded annually? (Note: Be careful not to round any intermediate steps less than six decimal places.) The annual rate for the nominal return of 0.71% per month is (Type your answer in decimal format. Round to six decimal places.) The nominal annual rate for the real return of 6.5% APR is (Type your answer in decimal format. Round to six decimal places.) (Select from the drop-down menus.) Based on a comparison of the two rates and the current inflation rate, you would prefer the V option over the option.