Tony Lent Dave $1,000 for One Year with the Understanding

question 98

Multiple Choice

Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070.If the actual inflation rate was 7 percent,then the real rate of interest Tony received is _____.

• A)14 percent
• B)7 percent
• C)4 percent
• D)0 percent
• E)−7 percent

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Definitions:

Glass Ceiling

An invisible barrier that prevents minorities and women from rising to the upper rungs of the corporate ladder, regardless of their qualifications or achievements.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, used to make a comparison in order to illustrate a point.

Twists, Turns

A phrase indicating unexpected changes or developments in a situation or narrative.

Vice-President Positions

Executive roles second in command to the president within an organization, responsible for specific departments or functions.