Raul Borrowed $1,000 from Marta for a Year and Agreed

question 112

Multiple Choice

Raul borrowed $1,000 from Marta for a year and agreed to repay her $1,050 at the end of the year.If the inflation rate was 3 percent,what is the real rate of interest Marta received?

• A)10 percent
• B)5 percent
• C)3 percent
• D)2 percent
• E)-2 percent

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Definitions:

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The right or condition of self-rule, typically exercised by a community, region, or country with a degree of autonomy from external authority.

Ban on Liquor

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