If You Want to Earn a Real Interest Rate of 3

question 54

Multiple Choice

If you want to earn a real interest rate of 3% on money you lend, and you expect that inflation will be 2%, what nominal rate of interest will you charge?

• A)1%
• B)5%
• C)6%
• D)9%
• E)12%

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Definitions:

Boxing

The process of converting a primitive type into its corresponding reference type or object.

Static Method

A method that belongs to the class, rather than instances of it, and can be called without creating an object of the class.

Class Name

A name given to a class to identify it in a program. It follows naming conventions and is used to create objects or instances.

Main Method

The entry point of a program in languages like Java, defined as a static method that takes an array of strings as an argument.