Jake Loaned Elwood $5,000 for One Year at a Nominal

question 2

Multiple Choice

Jake loaned Elwood $5,000 for one year at a nominal interest rate of 10 percent.After Elwood repaid the loan in full,Jake complained that he could buy 4 percent fewer goods with the money Elwood gave him than he could before he loaned Elwood the $5,000.From this,we can conclude that the rate of inflation during the year was

• A)-4 percent.
• B)4 percent.
• C)6 percent.
• D)14 percent.

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Definitions:

Algebraic Expression

A combination of numbers, variables, and operations (such as addition, multiplication) that represents a specific value.

Cash Register

A machine used in retail to calculate and record sales transactions and to store money.

Quarters

Refers to a fourth part or division of something, often used in the context of fiscal or academic periods.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables (like x or y) and operators (like add, subtract, multiply, and divide).