Assuming a $1,000 face value, what was your total dollar return on this investme

Question

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?(Do not include the dollar sign ($).)

What was your total nominal rate of return on this investment over the past year? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

If the inflation rate last year was 4.2 percent, what was your total real rate of return on this investment?(Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

a. 95
918 - 893 = 25 capital gains and you also earned 7% interest of the $1000 face value, which is 70. Gains of 70 + 25 = 95

b. 10.64%
$95 earned divided by your cost $893 = 10.64

c. 6.64%
10.638% earned - 4% inflation = 6.64

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