Answer:
Nominal rate of return= 0.0517 = 5.17%
Explanation:
Giving the following information:
Real rate of return= 2.97%
Inflation rate= 2.20%
To calculate the nominal rate of return, we need to use the following formula:
Real rate of return= nominal rate of return - inflation rate
Nominal rate of return= Real rate of return + inflation rate
Nominal rate of return= 0.0297 + 0.022
Nominal rate of return= 0.0517 = 5.17%
