Multiple Choice
A person invests in a fund earning interest at j2 = 6%.The annual rate of inflation is 2% in year 1,2.5% in year 2,and 3.0% in year 3.What is the annual real interest rate,compounded once a year,earned over the 3-year period?
A) 3.42%
B) 3.47%
C) 3.50%
D) 3.59%
Correct Answer:
Verified
Correct Answer:
Verified
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