Ai lun, a management trainee at a large new york based bank, is trying to estimate the real rate of return expected by investors. he notes that the 3-month t-bill currently yields 3 percent, and consumer prices have been rising steadily at a 2% rate for several years. what should ai lun's estimate of the real rate be? a) 5% b) 1% c) 3% d) 2%

option B

Step-by-step explanation:

given,                                              

3-month T-bill currently yields  = 3%          

customer price have been rising = 2% rate

Ai Lun's estimate of the real rate = ?            

real rate return                                                  

                       =

                       =

                       =

                       =

                       = 0.0098

                       = 0.98 % ≅ 1 %

hence, the correct answer is option B

+25 = x

step-by-step explanation:

here x is the hypotenuse of a right triangle whose legs are 7 and 24.   by the pythagorean theorem, 7² + 24² must equal x²:

x² = 49 + 576 = 625.   thus, x = +√625 = +25 = x