If the Interest Rate Is 4 Percent, to Get Back

question 109

Multiple Choice

If the interest rate is 4 percent, to get back $200 in one year you would need to deposit ________ today.

• A) $187.43.
• B) $192.31.
• C) $195.55.
• D) $208.00.

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Definitions:

Developing Economy

A nation with a lower standard of living, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Illiteracy

The inability to read and write, affecting an individual's ability to participate fully in society and the economy.

Economic Growth

The growth in the real market value of the goods and services an economy generates over a period.

Life Expectancy

The average number of years an individual or a specific group of people is expected to live, based on statistical calculations.