Katrina invested in her employer's stock program in 1992. The annual yield for her investment was 9.3%, and the inflation rate was 1.47%. What was the real growth rate of this investment?
A) 6.06%
B) 6.59%
C) 7.48%
D) 7.72%

Question

Quizplus · Accepted Answer

The real growth rate can be calculated as the nominal growth rate minus the inflation rate. 
Real growth rate = 9.3% - 1.47% = 7.83%
Therefore, the closest option is D, which is 7.72%.

Katrina Invested in Her Employer's Stock Program in 1992