Ask Question
5 May, 12:53

Veronica has received a $3,000 gift and is looking for a bank to start a savings account. Which option would be the best for her if the current inflation rate is 2.5%?

A. bank that offers 4% interest

B. bank that offers 3% interest

C. bank that offers 2.5% interest

D. bank that offers 3.5% interest

+1
Answers (2)
  1. 5 May, 13:54
    0
    B Is your answer
  2. 5 May, 14:58
    0
    A

    Step-by-step explanation:

    You are looking for the highest real interest rate, which is the nominal rate minus the inflation rate. With that being said, the lowest interest rate is 2.5%, which wouldn't make her anything. However, the 4% interest rate yields 1.5% real interest, making it the best option.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Veronica has received a $3,000 gift and is looking for a bank to start a savings account. Which option would be the best for her if the ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers