The inflation rate over the past year was 4.1 percent. If an investment had a real return of 9.8 percent, what was the nominal return on the investment?
Added by Christina S.
Step 1
The formula to calculate the nominal return (N) from the real return (R) and the inflation rate (I) is given by the Fisher equation: \[ N = R + I + (R \times I) \] Show more…
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