Finance Problem help

[FFactory0x]

How would i figure this out
The rates of return computed in Problems 1, 2, and 3 are nominal rates of return. Assuming that
the rate of inflation during the year was 4 percent, compute the real rates of return on these
investments. Compute the real rates of return if the rate of inflation were 8 percent.

Those rate
19.1%

-1.54%

18%

What do i times or divide by or what number on each one

 

[KLin]

42

 

[radioouman]

e^

 

[FFactory0x]

.191^.04???

 

[Kalbi]

r = n - i

 

[hypn0tik]

e^(ix) = cos(x) + i sin(x)

 

[FFactory0x]

can someone just do 19.1 and 4% written out

 

[Manchurian Candidate]

you won't be hired by the big 8

 

[akubi]

Originally posted by: Manchurian Candidate
you won't be hired by the big 8

lol :laugh:

 

[KLin]

Quick someone post that funny math pic.

 

[Kalbi]

Originally posted by: FFactory0x
can someone just do 19.1 and 4% written out

19.1 - 4 = 15.1

wtf? can't follow simple formula?

 

[FFactory0x]

Originally posted by: Kalbi

Originally posted by: FFactory0x
can someone just do 19.1 and 4% written out

19.1 - 4 = 15.1

wtf? can't follow simple formula?

Alright. Then why are the answers
Inflation adjusted returns:
Problem 1: 14.5% (at 4% inflation); 10.3% (at 8% inflation)
Problem 2: -5.3% (at 4% inflation); -8.8% (at 8% inflation)
Problem 3: 23.1% (at 4% inflation); 18.5% (at 8% inflation)

I have the key right here

 

[Kalbi]

Originally posted by: FFactory0x

Originally posted by: Kalbi

Originally posted by: FFactory0x
can someone just do 19.1 and 4% written out

19.1 - 4 = 15.1

wtf? can't follow simple formula?

Alright. Then why are the answers
Inflation adjusted returns:
Problem 1: 14.5% (at 4% inflation); 10.3% (at 8% inflation)
Problem 2: -5.3% (at 4% inflation); -8.8% (at 8% inflation)
Problem 3: 23.1% (at 4% inflation); 18.5% (at 8% inflation)

I have the key right here

There must be more to the question. Real rates are Nominal minus inflation.

 

[FFactory0x]

got it
1+.191
--------- === 14.5
1+ .04

 

[Wizkid]

Yep, they are saying that your money should be worth 4% more (inflation), so what percentage did your investment earn on top of that?