On January 1, 2020, Martha invested $3,500. During 2020, Martha's investment earned 7%, and inflation increased by 4%. What was Martha's real rate of return? 4.00% 2.88% 5.00% 7.00% 0 3.00%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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On January 1, 2020, Martha invested $3,500. During 2020, Martha's investment
earned 7%, and inflation increased by 4%. What was Martha's real rate of return?
4.00%
2.88%
5.00%
7.00%
3.00%
Transcribed Image Text:On January 1, 2020, Martha invested $3,500. During 2020, Martha's investment earned 7%, and inflation increased by 4%. What was Martha's real rate of return? 4.00% 2.88% 5.00% 7.00% 3.00%
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