If real rate is 16% and an inflation rate is 8%, then nominal rate of return will be
A. 27.28%
B. 25.28%
C. 22.28%
D. 21.28%
Answer: Option B
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.(1+N)=(1+r)(1+i)here r=16% & i=8%. (1,+N)=(1+16%)(1+8%) =25.28%