You Want to Earn a Real Rate of Return of 3.75

question 25

Multiple Choice

You want to earn a real rate of return of 3.75% at a time when the inflation rate is 2.33%. What is the approximate nominal rate that you must earn?

• A)5.78%
• B)5.96%
• C)6.08%
• D)6.14%
• E)6.28%

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Definitions:

Personal Helplessness

A state in which an individual feels they lack control over situations and outcomes in their life, often leading to decreased motivation and depression.

Internal Locus

A psychological term referring to individuals who believe that they have control over the outcomes of their actions and the events in their lives.

Reciprocal Determinism

A concept in psychology where a person's behavior both influences and is influenced by personal factors and the social environment.

Reciprocal Determinism

The theory that a person's behavior both influences and is influenced by personal factors and the social environment.