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

question 232

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?

• A)16 percent
• B)12 percent
• C)8 percent
• D)6 percent
• E)3 percent

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Definitions:

Conclusion

The final part of something, typically a judgment or decision that has been reached by reasoning.

Similarity

The state or fact of being similar; resemblance or likeness.

Strong Arguments

Arguments where if the premises are true, the conclusion is likely to be true, showing a high degree of logical support.

Conclusion

The final statement in a logical argument that follows from the premises.