The ________ Rate of Return Earned on an Investment Is

question 113

Multiple Choice

The ________ rate of return earned on an investment is unadjusted for lost purchasing power.

• A)effective
• B)annual
• C)real
• D)nominal
• E)none of the above

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Definitions:

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Future Value

The worth of a present asset on a future specified date, calculated using a projected growth rate.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Future Value

The value of an investment at a specific future date, including interest earned or compound interest.