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On January 1st, 2017, Teddy makes an investment of $100,000 into a savings account that produces a 6% nominal annual return.
Ten years later, the real value of Teddy's bank balance is $125,000.
Determine the real annual interest rate to two decimal places.
Find i%, the average inflation rate (to two decimal places) Teddy experienced over the course of the decade.
On January 1st, 2017, Teddy makes an investment of $100,000 into a savings account that produces a 6% nominal annual return.
Ten years later, the real value of Teddy's bank balance is $125,000.
Determine the real annual interest rate to two decimal places.
Find i%, the average inflation rate (to two decimal places) Teddy experienced over the course of the decade.