A certificate of deposit offers a nominal interest rate of 3.5 percent annually. If inflation is 1.5 percent, what is the real rate of return?A.2.5 percentB.2 percentC.1.75 percentD.1 percentSUBMITarrow_backPREVIOUS

An investment had a nominal return of 9.9 percent last year. The inflation rate was 3.1 percent. What was the real return on the investment?

Laura wants to get 8% in real return of her certificate of deposit. If the annual inflation rate is estimated at 2%, how much should her nominal interest be? (If your answer is 89%, please write 89)

You are a saver, and you deposit your savings in your savings account at your local bank. The bank promises a nominal interest  rate on your savings of 2.10%. You expect an inflation rate of 1.25% over the next year. Based on this information, what is the real interest rate that you want to receive?Group of answer choices0.85%1.25%3.35%-0.85%2.10%

If the real interest rate is 3% and the inflation rate is 7%, then the nominal interest rate is approximately Group of answer choices 10% 21% 3% 4% 7%

Suppose that in a given year, the rate of inflation is 3 percent, and the nominal interest rate is 2 percent. The real interest rate is: