MATHEMATICS · Multi-part · CBSE · Mathematics · Fractions in Disguise · Fractions in Disguise
Problem
Jerome places $6,000 in an investment account. The account pays 0.5% interest per month, and inflation is 0.1% per month.
(1) Explain why the real interest rate is approximately 0.4% per month.
(2) Hence find the real value of the investment after 2 years.