Normal Rate of Return Is

question 154

Multiple Choice

Normal rate of return is

• A) accounting profit.
• B) an explicit cost.
• C) economic profit.
• D) the amount that must be paid to obtain investment in a business.

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Definitions:

Saves

In finance, the amount of money that is set aside from income, typically in a savings account or other forms of secure investment.

Retirement Plan

A financial strategy that intends to provide individuals with income or resources during their retirement years.

Deposited

The action of placing money into a financial account or institution for safekeeping or to earn interest.

Compounded Annually

Interest calculation on the principal and the accumulated interest once a year.