Question

Cambridge State Bank is paying 7% interest on its one-year certificate of deposit. Ifthe inflation rate is 4%, which of the following is the best approximation for the realrate of interest that Cambridge State Bank is paying?a. 2.88 %b. 1 ¾ %c. 3 %d. 11 %

Answer 1

Answer: answer is C

Step-by-step explanation:

Interest rate - Inflation rate

= 7% - 4%

= 3%