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    Exam 9: Inflation
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    A Bank Offers Me 10% Annual Interest on an Investment
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A Bank Offers Me 10% Annual Interest on an Investment

Question 33

Question 33

Multiple Choice

A bank offers me 10% annual interest on an investment, but the inflation rate is 5%. What is the real interest rate?


A) 2%
B) 4.76%
C) 5%
D) 15%
E) 15.5%

Correct Answer:

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