Mr X Invests $1,000 at a 10 Percent Nominal Rate

question 62

Multiple Choice

Mr. X invests $1,000 at a 10 percent nominal rate for one year. If the inflation rate is 4 percent, what is the real value of the investment at the end of one year?

• A)$1,100
• B)$1,000
• C)$1,058
• D)$1,040

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Definitions:

Groundwater Supplies

Underground sources of fresh water stored in aquifers, crucial for drinking water, irrigation, and industrial uses.

Sulphur Content

The quantity of sulfur present in a material, which is significant in assessing air pollution potential, especially in fuels.

Crude Oil Reserves

Quantities of crude oil that are identified and accessible for extraction with current technology.

Arctic National Wildlife Refuge

A protected area in Alaska, United States, known for its natural beauty, diverse wildlife, and ongoing debates over oil exploration.