Tom put his savings into a certificate of deposit that paid a nominal interest rate of 5 percent a year. during the year, the cpi increased from 240 to 250. what was the real interest rate that tom earned? round your answer up to the second decimal. tom earned a real interest rate of percent a year. round your answer up to the second decimal.

Explanation:

we will divide the consumer price index (CPI)  to get the inflation rate

250/240 -1 = 0.041666666666  =  1/24  = 4.17% inflation rate

Then we use the fisher equation to solve for the real rate.

Some economist and accountant calculate the real interest rate by subtracting inflation by nominal:

nominal - inflation

5% - 4.17% = 0.83% or

0.05 - 0.041666 =   0.008333 = 0.83%

However the correct way is using the fisher equation

question 1: the kuwaiti government announced us$1.5 million in aid for rohingya refugees.they pointed out that it was imperative to take immediate and concrete steps to ramp up pressure on myanmar to put an end to the violence.and said   that they r just shameful

question 2: the rohingyas were not aloud to be seen as people in myanmar.in the last few years, before the latest crisis, thousands of rohingya were making perilous journeys out of myanmar to escape communal violence or alleged abuses by the security forces.the latest exodus began on 25 august 2017 after rohingya arsa militants launched deadly attacks on more than 30 police posts.rohingyas arriving in an area known as cox's bazaar - a district in bangladesh - say they fled after troops, backed by local buddhist mobs, responded by burning their villages and attacking and killing civilians.

answer; education;