I Invested a Sum of Money in a Project Five

question 47

Multiple Choice

I invested a sum of money in a project five years ago. The rate of inflation since then has been 5% per year. Now I receive a return of $5 000 on my original investment. I calculate that my real rate of return on the original investment has been 10%. What was the size of my original investment?

• A)$2 435
• B)$3 105
• C)$3 918
• D)$3 962
• E)$6 309

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Definitions:

Annual Fuel Bill

The total cost incurred by an individual or organization for fuel over the course of a year.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the return on investment for savings.

Interest Rate

The portion of a loan subject to interest for the borrower, frequently shown as an annual percentage of the outstanding sum of the loan.

Antique Price

The market value of articles that have high value because of their considerable age and historical significance.