Assume You Purchase an Asset That Cost 6000 and Borrow

question 2

Multiple Choice

Assume you purchase an asset that cost 6000 and borrow 40 % of the cost from a wealthy relative. After a year the asset is worth 7800 . What is your rate of return on your investment?

• A)50%
• B)30%
• C)7.5%
• D)60%
• E)5%

---

Definitions:

Postmodernity

A term that characterizes postindustrial societies, including a focus on the production and management of information and skepticism of science and technology.

Modernity

The quality or condition of being modern, often associated with cultural and economic developments in society following the Age of Enlightenment.

Social Change

The alteration over time in behavior patterns, cultural values, and norms of a society.

Cultural Diffusion

The process by which cultural beliefs, practices, and items spread from one society or culture to another.