You Lend $5,000 to a Friend for One Year at a Nominal

question 199

Multiple Choice

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.The CPI over that year rises from 180 to 190.What is the real rate of interest you will earn?

• A)0%
• B)4.4%
• C)5.5%
• D)5.8%
• E)7.8%

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Definitions:

Visual Information

Data perceived through the sense of sight, crucial for learning, navigation, and understanding of our environment.

Semantic Information

Information related to the meanings of words and sentences, often discussed in the context of understanding language and communication.

Long-term Storage

The phase of memory where information is retained for extended periods, potentially for a lifetime; part of the human memory model.

Sensory Memory

The shortest-term element of memory which allows the ability to retain impressions of sensory information after the original stimuli have ended.