On January 1,2008,Anna Invested $5,000 at 5% Interest for One

question 152

Multiple Choice

On January 1,2008,Anna invested $5,000 at 5% interest for one year.The consumer price index (CPI) on January 1,2008 stood at 160.On January 1,2009,the CPI was 168.The real rate of interest earned by Anna was

• A) - 5%.
• B) 0%.
• C) 5%.
• D) 8%.
• E) 10%.

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Definitions:

Standard Deviation

A metric that quantifies the spread or variation of a dataset in comparison to its average value.

Normal Model

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A criterion for evaluating the extent of scattering or variation present in a dataset.

Probability

A quantification of the probability that a specific event will take place, commonly represented as a value ranging from 0 to 1.