Marquis Borrowed $1,000 from Ayana for a Year and Agreed

question 57

Multiple Choice

Marquis borrowed $1,000 from Ayana for a year and agreed to repay her $1,050 at the end of the year. If the inflation rate was 3 percent, what is the real rate of interest Ayana received?

• A) 10 percent
• B) 5 percent
• C) 3 percent
• D) 2 percent
• E) −2 percent

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Definitions:

Infantile Amnesia

The relative paucity of autobiographical memories dating from before about 3 years of age.

Autobiographical Memories

Refers to a person's memories of their own life events and experiences, including both significant milestones and everyday events.

Central Details

The most important or essential pieces of information within a context or text.

Peripheral Details

Information that is not the central focus but can be found in the margins or periphery, often not the main point of attention.