Assume inflation is 0.24% per month. Would you rather earn a nominal return of 0.74% per? month, compounded? monthly, or a real return of 6.57% APR, compounded? annually?
?(?Note: Be careful not to round any intermediate steps less than six decimal? places.)
The annual rate for the nominal return of 0.74% per month is ___.
?(Type your answer in decimal format. Round to six decimal? places.)
The nominal annual rate for the real return of 6.57% APR is ___.
?(Type your answer in decimal format. Round to six decimal? places.)
Based on a comparison of the two rates, and the current inflation rate, you would prefer the _____ option over the _____ option.