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Imagine That You Borrow $5,000 for One Year and at the End

question 120

Multiple Choice

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%,what was the real interest rate you paid?


Definitions:

Archaic

Pertaining to an earlier period of time, often used to describe ancient civilizations or outdated language.

Mesolithic

The Middle Stone Age of Europe, Asia, and Africa beginning about 12,000 years ago.

Americas

The continents of North and South America, including the Central American and Caribbean regions, known for diverse cultures, histories, and ecological systems.

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