You want to earn a real rate of return of 3.25 percent at a time when the inflation rate is 2.41 percent. What is the approximate nominal rate which you must earn?
A) 5.42 percent
B) 5.66 percent
C) 5.68 percent
D) 5.74 percent
E) 5.81 percent

Question

Quizplus · Accepted Answer

The Answer of You want to earn a real rate of return of 3.25 percent at a time when the inflation rate is 2.41 percent. What is the approximate nominal rate which you must earn?
A) 5.42 percent
B) 5.66 percent
C) 5.68 percent
D) 5.74 percent
E) 5.81 percent

You Want to Earn a Real Rate of Return of 3.25