Expect the rate of inflation


Problem: If you require a real growth in purchasing of your investment of 8% and you expect the rate of inflation over the next year to be 3%, what is the lowest return that you would be satisifed with?

a. 3.0%
b. 8.0%
c. 11.00%
d. 11.24%

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Finance Basics: Expect the rate of inflation
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