$1000 accummualtes to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual effective real rate of return?
Question
Solution 1
The real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation.
Step 1: First, we need to calculate the nominal rate of return. This is the rate of return without adjusting for inflation. We can use the formula for the fut Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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