Darius Lent Alejandro $1,000 for One Year with the Understanding

question 98

Multiple Choice

Darius lent Alejandro $1,000 for one year with the understanding that Alejandro would repay $1,070. If the actual inflation rate was 7 percent, what was the real rate of interest Darius received?

• A) 14 percent
• B) 7 percent
• C) 4 percent
• D) 0 percent
• E) −7 percent

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