€4000 is invested in an account that pays interest per quarter
MATHEMATICS · Multi-part · AoPS · Mathematics · Exponents and Logarithms · Exponents and Logarithms
Problem
€4000 is invested in an account that pays 1.2% interest per quarter. At this time, inflation averages 0.5% per quarter.
(1) Find the real rate of interest per year.
(2) Hence find the real value of the investment after 5 years.