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Marquis Borrowed $1,000 from Ayana for a Year and Agreed

Question 57

Multiple Choice

Marquis borrowed $1,000 from Ayana for a year and agreed to repay her $1,050 at the end of the year. If the inflation rate was 3 percent, what is the real rate of interest Ayana received?


A) 10 percent
B) 5 percent
C) 3 percent
D) 2 percent
E) −2 percent

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