Imagine That You Borrow $1,000 for One Year and at the End

question 75

Multiple Choice

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest.If the inflation rate was 7%, what was the real interest rate you paid?

• A)17 percent
• B)10 percent
• C)7 percent
• D)3 percent
• E)1.5 percent

---

Definitions:

Uterine Wall

The muscular and membranous layer surrounding the uterus, which thickens during the menstrual cycle and pregnancy to support fetal development.

Germinal Stage

The first phase of prenatal development, encompassing the first two weeks after conception, during which the zygote begins to divide and grow.

Prenatal Development

The progression of maturation and evolution inside the uterus from the moment of conception until delivery.

Placenta

A structure that forms within the uterus throughout pregnancy, supplying oxygen and nutrients to the developing fetus while eliminating waste substances from the fetus's bloodstream.