Suppose you have savings deposited in an account at an interest rate of 4 percent and your father tells you he earned 8 percent 10 years ago. Use the concept of the real interest rate to answer the following questions.
(A) Which of yau gat a better return? I5 this all the infarmatian yau need?
(B) Suppose the rate of infletion was 5 percent 10 years agd and it is now 3 percent. Daes this infarmation change your answer?

Question

Suppose you have savings deposited in an account at an interest rate of 4 percent and your father tells you he earned 8 percent 10 years ago. Use the concept of the real interest rate to answer the following questions.
 (A) Which of yau gat a better return? I5 this all the infarmatian yau need?
(B) Suppose the rate of infletion was 5 percent 10 years agd and it is now 3 percent. Daes this infarmation change your answer?

Quizplus · Accepted Answer

The Answer of Suppose you have savings deposited in an account at an interest rate of 4 percent and your father tells you he earned 8 percent 10 years ago. Use the concept of the real interest rate to answer the following questions.
 (A) Which of yau gat a better return? I5 this all the infarmatian yau need?
(B) Suppose the rate of infletion was 5 percent 10 years agd and it is now 3 percent. Daes this infarmation change your answer?

Suppose You Have Savings Deposited in an Account at an Interest