What Nominal Annual Return Is Required on an Investment in Order

question 22

Multiple Choice

What nominal annual return is required on an investment in order that an investor experiences a 12 percent gain in purchasing power? Assume inflation to be 4 percent.

• A)7.69 percent
• B)9.29 percent
• C)12.00 percent
• D)16.48 percent

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Definitions:

Connective Tissue

Tissue that supports, binds together, and protects organs, consisting of cells, fibers, and extracellular matrix.

Axillary Lymph Nodes

Lymph nodes located in the armpit (axilla) that play an essential role in filtering harmful substances and in the body's immune response.

Right Lymphatic Duct

A lymphatic vessel in the body that drains lymph from the right upper limb, right side of the thorax, and the right halves of the head and neck.

Edema

Swelling caused by excess fluid trapped in the body's tissues, often resulting from inflammation, injury, or medical conditions.