If the Current Inflation Rate Is 3

question 58

Multiple Choice

If the current inflation rate is 3.6% and you have an investment opportunity that pays 10.9%, then the real rate of interest on your investment is closest to ________.

• A) 8.5%
• B) 9.9%
• C) 11.3%
• D) 7.0%

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Definitions:

In-Kind

Refers to payments or contributions made in goods or services instead of cash.

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Earnings Percent

Earnings percent refers to the proportion or percentage of income earned from an investment, work, or business operation relative to the initial cost or investment size.

Workforce

The total number of people employed or available for employment or work in a country, organization, or specific industry.