Neco Model Questions Vol1 2022 Economics Question 36
Practice objective / multiple choice question 36 from the 2022 Neco Model Questions Vol1 Economics examination.
The Consumer Price Index (CPI) was \(150\) in 2020 and rose to \(157.5\) in 2021. A commercial bank offers a nominal interest rate of \(12\%\) per annum on a savings account. Assuming the inflation rate equals the CPI increase, calculate the real interest rate using the Fisher equation and then determine the future value of a \(N1000\) deposit after 3 years in real terms.
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About This Question
This is Neco Model Questions Vol1 2022 Economics Question 36. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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