If Your Nominal Rate of Return Is 14

question 11

Multiple Choice

If your nominal rate of return is 14.38 percent and your real rate of return is 3.97 percent, what is the inflation rate?

• A) 8.47 percent
• B) 10.01 percent
• C) 10.54 percent
• D) 18.35 percent
• E) 18.92 percent

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Definitions:

The Point Method

A technique used in job evaluation that assesses jobs on the basis of a series of factors that are each given a point value.

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization by analyzing their duties, responsibilities, and requirements.

Compensable Factors

Elements of a job that are used to determine appropriate compensation, such as skill level, effort, responsibility, and working conditions.

Skills

Abilities and expertise that individuals possess, which enable them to perform tasks effectively.