What is the yearly inflation rate

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Suppose your Zimbabwean bank account pays interest monthly with the interest rate quoted as an effective annual rate (EAR) of 50%. (a) What percent interest will you earn each month? (b) Suppose the weekly inflation rate in Zimbabwe is 1%. What is the yearly inflation rate? (c) What is the real interest rate on your Zimbabwean bank account? Use the exact formula and not the approximation.

Reference no: EM13854189

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