Tony Loaned $1,000 to Dave for One Year, with the Understanding

question 51

Multiple Choice

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

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

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Definitions:

Non-Democratic

Pertaining to a government or political system that does not follow the principles of democracy, often lacking free and fair elections or representation.

Ethnic Conflicts

Conflicts between different ethnic groups, often arising from issues of discrimination, cultural differences, or historical grievances.

Iraqi Military

The armed forces of Iraq, which include the Army, Air Force, Navy, and other specialized units, responsible for the defense of the country.

Foreign Occupation

The control or governing of a foreign territory by military forces from another country.