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

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Definitions:

Account Management Policies

Guidelines or practices a company follows to manage and nurture relationships with its clients, often to ensure customer satisfaction and loyalty.

Creative Solutions

Innovative and effective problem-solving approaches in business or other contexts.

Target Markets

Specific groups of potential consumers towards which a company directs its marketing efforts and strategies.

Relationship Selling

A sales technique that focuses on building long-term relationships with customers rather than on individual transactions, emphasizing customer satisfaction and loyalty.