The Real Interest Rate Is 1

question 27

Multiple Choice

The real interest rate is 1.8% per annum, and the inflation rate is 3% a year. What is the present value of a nominal payment of $5,000 next year? Round your answer to the nearest $10.

• A)$4,910
• B)$4,550
• C)$4,770
• D)none of the above

---

Definitions:

Non-verbal Communication

The process of transmitting messages without the use of words, which may include gestures, body language, facial expressions, and eye contact.

Persuasion

The action or process of influencing someone's beliefs, attitudes, or behaviors through argument, reasoning, or appeal.

Filtering

The process of selecting, modifying, or withholding information as it passes through communication channels.

Feedback

Information given to an individual or group about their performance or behavior for the purpose of improvement.