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Mr X Invests $1,000 at a 10 Percent Nominal Rate

Question 62

Multiple Choice

Mr. X invests $1,000 at a 10 percent nominal rate for one year. If the inflation rate is 4 percent, what is the real value of the investment at the end of one year?


A) $1,100
B) $1,000
C) $1,058
D) $1,040

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