In a Recessionary Economy, Interest Rate on Deposits Can Be

question 38

Multiple Choice

In a recessionary economy, interest rate on deposits can be 0 percent. However, Raymond has an investment of $25 000 now, and in three years it will mature and pay Raymond $32 000. What is the approximate rate of return on his investment?

• A)8)3 percent
• B)8)6 percent
• C)8)9 percent
• D)Insufficient information to calculate this question

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