Answer is d. 9.2% | |||||
Explanation: | |||||
Real return: 3.25% | |||||
Inflation rate: 5.75% | |||||
Nominal Rate of return = (1+ Real return) (1+ Inflation rate) - 1 | |||||
(1+0.0325) (1+0.0575) -1 =9.187% | |||||
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