If your nominal rate of return is 14.38 percent and your real rate of return is 3.97 percent, what is the inflation rate?

Name: If your nominal rate of return is 14.38 percent and your real rate of return is 3.97 percent, what is the inflation rate?
Brand: Quizplus
Rating: 4.9 (62 reviews)

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the Fisher equation: (1 + nominal rate) = (1 + real rate) * (1 + inflation rate). Solving for the inflation rate gives approximately 10.01 percent.

If Your Nominal Rate of Return Is 14