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Q: If a person has money invested at 9 percent and the rate of inflation is 5 percent how much return are they actually making on their investment?

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rose by 1 percent

1000 x (1.01)12 = $1126.83

$2,500 is your answer

The sum you need is: 500 * 0.05^6. (Obviously, this sum gives "how much money you will have", not how much it will be worth, since inflation or other factors are not taken into account).

Interest = (Principal x Time X Rate)/100 so in this case interest = (1000 x 3 x 9)/100 = 2700/100 = 27

Related questions

rose by 1 percent

rose by 1 percent

rose by 1 percent

jenny has thrice as much money invested in 15% as she invested at 12%. if she gets 51,300.00 from both investment how much did she invest at each rate?

Your investment will be worth 13.2% more in real terms

1,296 / 1.08 = 1,200

750 invested for 10 years at 10% pa would be 1,945

1000 x (1.01)12 = $1126.83

It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.

below two percent

n=? PV=-$200 FV=$544 i=8% it will take 13 yrs

Zimebabwe with an inflation rate of 231 million percent.