In early 2002, the inflation rate was about 1.4%. If you invested in a savings account with an annual interest rate of 4.8%, what was the real growth rate of this investment?
A) 1.66%
B) 3.35%
C) 4.27%
D) 6.12%

Question

Quizplus · Accepted Answer

The real growth rate can be calculated by subtracting the inflation rate from the interest rate.

Real growth rate = 4.8% - 1.4% = 3.4%

Therefore, the correct answer is B (3.35%).

In Early 2002, the Inflation Rate Was About 1