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

question 9

Multiple Choice

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

• A) 3.49%
• B) 9.78%
• C) 4.84%
• D) 6.38%

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Definitions:

Dominant Gene

A genetic sequence that overpowers and determines the expression of a trait over another allele.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical, being masked by the effects of a dominant gene when paired with it.

Down Syndrome

A genetic disorder caused by the presence of all or part of an extra 21st chromosome, characterized by physical growth delays, characteristic facial features, and varying degrees of intellectual disability.

Live Births

The act of giving birth to young that are developed within the mother's body and are born alive.