You Want to Earn a Real Rate of Return of 3.64

question 43

Multiple Choice

You want to earn a real rate of return of 3.64 percent at a time when the inflation rate is 2.84 percent.What is the approximate nominal rate which you must earn?

• A)6.48 percent
• B)6.66 percent
• C)6.68 percent
• D)6.74 percent
• E)6.81 percent

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Definitions:

Economic Stress

A condition or situation characterized by financial strain, uncertainty, or hardship affecting individuals, families, or communities, often due to external economic factors.

Nuclear Family

A family group consisting of two parents and their children (biological or adopted), considered the basic unit of society.

Feral

Animals or plants that have returned to a wild state after being domesticated or cultivated.

Teknonymy

A form of naming convention wherein parents are referred to by the names of their children.