Suppose That You Lend Me $100 for a Year,and That

question 42

Multiple Choice

Suppose that you lend me $100 for a year,and that I agree to pay you $110 at the end of one year (principal plus interest) .Over the intervening year,however,the average price of goods in the economy rises by 3%.The real rate of return that you will earn on your loan to me is therefore equal to

• A)3%.
• B)7%.
• C)10%.
• D)13%.
• E)greater than 13%.

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Definitions:

Human Resource Planning

The process undertaken by an organization to ensure the right number and types of employees are available to meet current and future needs.

Strategic

Pertaining to the identification and prioritization of long-term or overall aims and interests and the means of achieving them.

Predicting

The act of making educated guesses about future events based on available data or trends.

Expert Forecasts

Predictions or assessments about future events or conditions made by individuals with specialized knowledge in a particular area.