Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

How to find inflation for next year. Finance help. 10 points.?

You're considering an investment that you expect will produce an 8% return next year and you expect that your real rate of return on this investment will be 6%. What do you expect inflation to be next year

2 Answers

Relevance
  • 7 years ago
    Favorite Answer

    2%

  • 7 years ago

    Based on the inflationary trend the rate of interest may vary. This is one of the methods adopted by Central Bank to control inflation. Anyhow the future inflationary trend cannot be assessed correctly.

Still have questions? Get your answers by asking now.