Over the Past Year, You Earned a Nominal Rate of Interest

question 63

Multiple Choice

Over the past year, you earned a nominal rate of interest of 8% on your money. The inflation rate was 4% over the same period. The exact actual growth rate of your purchasing power was

• A) 15.5%.
• B) 10.0%.
• C) 3.8%.
• D) 4.8%.
• E) 15.0%.

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Definitions:

Offset

Refers to the distance or displacement from a particular point or reference, commonly used in programming and memory allocation.

Expression

A combination of variables, constants, and operators that the computer evaluates to produce a value.

Indirection Operator

In programming, an operator that allows access to the value pointed to by a pointer variable; typically denoted by the asterisk (*) in C and C++.

Integer Array

A collection of integers stored in contiguous memory locations, accessible by indexing.