An Investment Today of $25,000 Promises to Return $10,000 Annually

question 9

Multiple Choice

An investment today of $25,000 promises to return $10,000 annually for the next 3 years.What is the real rate of return on this investment if inflation averages 6% annually during the period?

• A) 3.49%
• B) 9.78%
• C) 4.84%
• D) 6.38%

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Definitions:

Technology

Technology encompasses the tools, machines, techniques, and sources of power that make work easier and solve real-world problems.

Mutual Respect

A reciprocal understanding and valuing of the rights, beliefs, and practices of another person or group, fostering positive interaction and cooperation.

Teamwork

Collective effort by a group of individuals working together to achieve common goals, characterized by mutual support and collaboration.

Productivity

A measure of the effectiveness and efficiency with which individuals, companies, or economies produce goods and services.