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How Much Would an Investor Need to Receive in Nominal

question 61

Multiple Choice

How much would an investor need to receive in nominal return if he desires a real return of 4% and the rate of inflation is 5%?

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Definitions:

Original Obligor

The original party responsible for repaying a debt or fulfilling an obligation under the terms of a contract.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties because the contract discharges a debt or duty owed to them.

On Credit

The purchase of goods or services with the promise to pay at a future date.

Just Books

a term potentially referring to a concept of fairness in accounting practices, ensuring that records are accurate and truthful.

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