Answer:
The nominal return on the investment is 13.2404%
Explanation:
The computation of the nominal return on the investment is shown below:
As we know that
nominal return = (1 + real rate) × (1 + inflation rate) - 1
= [(1 +0.092) × (1 + 0.037)] - 1
= (1.037 × 1.092) - 1
= 13.2404%
Hence, the nominal return on the investment is 13.2404%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
