Jake Loaned Elwood $6000 for One Year at a Nominal

question 94

Multiple Choice

Jake loaned Elwood $6000 for one year at a nominal interest rate of 12 percent. After Elwood repaid the loan in full, Jake complained that he could buy 5 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $6000. What was the rate of inflation during the year?

• A) 2.5 percent
• B) 7.0 percent
• C) 8.0 percent
• D) 17.0 percent

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Definitions:

Respiratory Rate

The number of breaths a person takes per minute, which is an essential vital sign in health assessments.

Pulse Oximetry

A non-invasive method used to measure the oxygen saturation level of the blood, typically by attaching a device to a fingertip, toe, or earlobe.

Acetaminophen

A medication used to reduce fever and relieve pain, also known as paracetamol in some countries.

Prednisone

A synthetic corticosteroid drug used to suppress the immune system and reduce inflammation in conditions such as asthma and rheumatoid arthritis.