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

question 88

Multiple Choice

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

• A) 3.5%
• B) 9.7%
• C) 14.0%
• D) 20.0%

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Definitions:

Self-Esteem

Refers to how much value people place on themselves; it is the perception of one's own worth or abilities.

Concession Bargaining

The process of getting each side in a conflict to willingly make concessions in exchange for concessions made by the opposing side.

Low Conformers

Individuals who tend not to follow the norms or standards set by their social group or society.

Tolerate

To allow the existence, presence, or practice of something that one does not necessarily like or agree with, without interference.