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Sagot :
Based on the information given, the real interest rate that Maria's total real return over the 3-year period will be 0.94%.
Inflation rate in 2012 will be:
= (105/100) - 1 = 5%
Inflation rate in 2013 will be:
= (110/105) - 1 = 4.76%
Inflation rate in 2014 will be:
= (118/100) - 1 = 7.27%
The average inflation rate for three years will be 5.67%.
The real return for 2012 will be:
= (1 + 0.06) / (1 + 0.05) - 1
= 0.95%
The real return for 2013 will be:
= (1 + 0.06) / (1 + 0.0476) - 1
= 1.18%
The real return for 2014 will be:
= (1 + 0.06) / (1 + 0.0727) - 1
= -1.18%
Therefore, the rate of return over the three years period will be:
= (1 + 0.095) × (1 + 0.118) × (1 - 0.118) - 1
= 0.94%
In conclusion, the correct option is 0.94%.
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