You Want to Earn a Real Rate of Return of 4.00

question 98

Multiple Choice

You want to earn a real rate of return of 4.00 percent at a time when the inflation rate is 2.05 percent.What is the approximate nominal rate which you must earn?

• A) 5.75 percent
• B) 5.95 percent
• C) 6.05 percent
• D) 6.15 percent
• E) 6.25 percent

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Definitions:

Future Demand

The projected need or desire for products or services at some point in the future, based on current trends, data, or predictions.

No-need Objection

A type of resistance or hesitation expressed by a potential customer, based on the belief that they do not need the product or service being offered.

Prospect

A prospect is a potential customer who has been identified as having the interest and ability to purchase a product or service.

Sales Presentation

A promotional talk or pitch aimed at generating interest in a product or service.