What Nominal Annual Return Is Required on an Investment for an Investor

question 58

Multiple Choice

What nominal annual return is required on an investment for an investor to experience a 12% gain in purchasing power? Assume inflation is 4%.

• A) 7.69%
• B) 9.29%
• C) 12.00%
• D) 16.48%

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Definitions:

Continental Ecosystems

Large-scale ecosystems that encompass the diverse biological communities found within a continent's various habitats.

Successional Communities

Communities of plants and animals that gradually replace one another over time, following disturbance, leading to a more stable ecosystem known as a climax community.

Competition

An interaction between organisms or species, in which the fitness of one is lowered by the presence of another due to the shared consumption of a limited resource.

Beneficial

Refers to something that produces good or helpful results or effects.