Dean Borrows $400 from Tim

question 244

Multiple Choice

Dean borrows $400 from Tim. Tim wants to make a 10% real return on his money, so they both agree on a 10% interest rate paid next year. Dean and Tim did not anticipate any inflation, yet the actual inflation turned out to be 4% next year. In this case,

• A) Tim is better off.
• B) Dean will pay $56 a year from now on.
• C) Dean is better off.
• D) Tim will receive more than 10% of real rate of return a year from now.

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Definitions:

Cell Margin

The space between the content of a cell and its border in a table or spreadsheet.

Border Weight

The thickness of the outline or border of a shape, text box, or other elements in a digital document or graphic.

Spacing Between Cells

In spreadsheets or tables, it refers to the distance or gap between individual cells, affecting the visual layout and readability.

Roman Numerals

A numeral system originating from ancient Rome, using combinations of letters from the Latin alphabet (I, V, X, L, C, D, M) to represent numbers.