A Year Ago, You Invested $1,000 in a Savings Account

question 59

Multiple Choice

A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 9%. What is your approximate annual real rate of return if the rate of inflation was 4% over the year?

• A) 5%
• B) 10%
• C) 7%
• D) 3%

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Definitions:

Nuisance

Nuisance is a legal term referring to an act, condition, or thing causing inconvenience or damage to the public or to individuals, particularly in the enjoyment of private rights.

Implementation Plan

A strategic outline that details the steps, resources, and timeline necessary to execute a project or initiative.

Administrator

A person appointed to manage or supervise the execution of tasks, often within organizations, estates, or network systems.

Excessive Concentrations

An overinvestment in a particular asset, sector, or market which increases risk due to lack of diversification.