Assume That Last Year,Isaac Earned 13

question 76

Multiple Choice

Assume that last year,Isaac earned 13.6 percent on his investments while U.S.Treasury bills yielded 2.7 percent,and the inflation rate was 2.2 percent.What real rate of return did he earn on his investments last year?

• A)11.63 percent
• B)11.15 percent
• C)13.56 percent
• D)12.24 percent
• E)10.39 percent

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Definitions:

Accounts Affected

The specific accounts in the general ledger that are impacted by financial transactions.

Financial Statement

A summary report that quantitatively describes the financial health of a company, including income statements, balance sheets, and cash flow statements.

Normal Balance

The normal balance is the side (debit or credit) of an account that is normally expected to have a higher balance.

Financial Statement

An officially maintained account of the economic engagements and financial circumstances of a company, an individual, or a variant entity.