rosamorris4701 rosamorris4701

24-05-2022
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An investment had a nominal return of 11.7 percent last year. The inflation rate was 4.4 percent. What was the real return on the investment?

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Tundexi Tundexi

07-06-2022

The real return on this investment equals to 7.3%.

What is a real return on an investment?

This refers to the amount earned on an investment after accounting for taxes and inflation.

Real return = Nominal return - Inflation rate

Real return = 11.7% - 4.4%

Real return = 7.3%

Therefore, the real return on this investment equals to 7.3%.

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