What real rate of interest would you earn on the saving


Check with your local bank to find out what interest rates currently apply to (a) one-year savings certificates and (b) three-year automobile loans. Compare these nominal interest rates with the current rate of inflation as measured by the most recently announced rate of change in the consumer price index. If the current rate of inflation were to continue unchanged, what real rate of interest would you earn on the saving certificate? What real rate of interest would you pay on the loan?

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Financial Management: What real rate of interest would you earn on the saving
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