Asked by Katherine Broussard on Jun 02, 2024
Verified
Over a five-year period, Hardip's $2,000 investment grew to $2675. At the same time, the CPI increased from 106.1 to 109.1. What was Hardip's real compound rate of return?
Real Compound Rate of Return
The annual rate of return on an investment, adjusted for inflation, that compounds over time.
CPI Increased
indicates that the Consumer Price Index, which measures changes in the price level of consumer goods and services, has risen.
- Examine and calculate the actual return on investment, considering the impact of inflation.
Verified Answer
CM
Learning Objectives
- Examine and calculate the actual return on investment, considering the impact of inflation.