Factor the Following Expression

question 11

Multiple Choice

Factor the following expression:

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Definitions:

Real Rate of Return

The rate of return on an investment after adjusting for inflation, showing the actual increase in purchasing power.

Real Rate

The interest rate adjusted for inflation, representing the real cost of borrowing or the real yield on an investment.

Expected Inflation

The rate at which it is forecasted that the general level of prices for goods and services will rise over a period of time.

Nominal Rate

The interest rate before adjustments for inflation, indicating the gross rate of return on an investment.