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iliketurtures
26.04.2021 •
Business
A medic alert bracelet may indicate that a costomer;
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Ответ:
The summary as per the given query is summarized in the explanation section below..
Explanation:
The given values are:
The nominal rate of return,
= 7%
i.e.,
= 0.07
Inflation,
= 4%
i.e.,
= 0.04
Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.Now,
The rate of return will be:
=![(\frac{1+ nominal \ rate \ of \ return}{1+Inflation}) -1](/tpl/images/1179/7609/8b03d.png)
On substituting the values, we get
=![(\frac{1+0.06}{1+0.04} )-1](/tpl/images/1179/7609/54238.png)
=![(\frac{1.07}{1.04} )-1](/tpl/images/1179/7609/d82a9.png)
=![1.028846-1](/tpl/images/1179/7609/e43cf.png)
=![2.8846 \ percent](/tpl/images/1179/7609/a496a.png)
Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.