question archive Mrs García Valverde invested $ 100,000
Mrs García Valverde invested $ 100,000
Subject:FinancePrice:2.86 Bought7
Mrs García Valverde invested $ 100,000.00 of her savings in Treasury Bonds ( TBILLS ) for one year. The annual rate produced by the TBILLS was 35%, while the inflation rate in the year was 20%.
It asks:
1. Indicate what was the total amount that this person obtained for the concept of return on your investment.
2. Indicate what is the minimum necessary amount that you should have received for maintain your investment in terms of this purchasing power than at the beginning of the year.
3. Considering the two previous items, what was the real yield that this
person about your investment?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
1. Total amount (ROI) = $35,000
2. Inflation = $20,000
3. Real Yield = $15,000
Step-by-step explanation
1. Total Amount (ROI)
= $100,000 × 35%
= $35,000
2. Inflation
= $100,000 × 20%
= $20,000
3. 35% - 20%
= 15%
Real Yield
= $100,000 × 15%
= $15,000
