If an investment providing a nominal return of 14.49% only offers a real rate of return...

If an investment providing a nominal return of 14.49% only offers a real rate of return of 3.86%, then the exact inflation rate (%) is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.

Expert Solution

Inflation Rate = ((1+Nominal Return) / (1+Real Return)) -1

= ((1+0.1449) / (1+0.0386)) -1

= 10.23%

jeff jeffy answered 2 years ago

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