Multiple Choice
Jack invested $1200 into an account for 5-years with interest at j2 = 6%.If the annual inflation rate is 2% for the first 2-years and 2.5% thereafter,what is the annual real rate of interest earned over the 5-years?
A) 3.71%
B) 1.96%
C) 3.13%
D) 2.94%
Correct Answer:
Verified
Correct Answer:
Verified
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