You Want to Earn a Real Rate of Return of 4.00

question 34

Multiple Choice

You want to earn a real rate of return of 4.00% at a time when the inflation rate is 2.05%. What is the approximate nominal rate that you must earn?

• A)5.75%
• B)5.95%
• C)6.05%
• D)6.15%
• E)6.25%

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Definitions:

Raising Children

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

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Various routes or methods by which individuals transition from full-time work to retirement.

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A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Institutionalism

A psychological state in which people in nursing homes develop apathy, indifference, and a lack of caring about themselves.