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23 December, 03:53

If your bank pays you an interest rate of 6% and the inflation rate is 2% then your real rate of return is 8%.

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  1. 23 December, 07:47
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    Real rate of return = 4%

    Explanation:

    Giving the following information:

    If your bank pays you an interest rate of 6% and the inflation rate is 2% then your real rate of return is 8%.

    False, the inflation rate decreases the value of money over time. Therefore, the inflation rate rests value to the interest rate.

    Real rate of return = 0.06 - 0.02 = 0,04 = 4%
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