Multiple Choice An investment had a nominal return of 100 percent last year. If the real return on the investment was only 7.6 percent, what was the inflation rate for the year? 2.48% 2.23% 218% 18.36% 10.27%

Multiple Choice An investment had a nominal return of 100 percent last year. If the real return on the investment was only 7.6 percent, what was the inflation rate for the year? 2.48% 2.23% 218% 18.36% 10.27%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter11: Venture Capital Valuation Methods

Section: Chapter Questions

Problem 1EP

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Concept explainers

Interest Rate

When you deposit your money with the bank, the deposit earns you some extra money at the end of the specific period – something more than what you deposited. That amount of money that the bank pays you for keeping the money with the bank is the “interest” and the percentage at which the bank pays you for your amount is called the “interest rate”.

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