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:

Sushi

A traditional Japanese dish consisting of vinegared rice accompanied by various ingredients such as seafood, vegetables, and sometimes tropical fruits.

Fingernail Biting

A common habit or compulsive behavior involving biting one's own fingernails, often linked to anxiety or stress.

Overeating

The act of consuming food in quantities greater than the energy expenditure of the individual, which could lead to weight gain.

Oral Stage

The first stage in Freud's psychosexual development, occurring in the first year of life, centered on the pleasures and frustrations associated with the mouth.