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Raul Borrowed $1,000 from Marta for a Year and Agreed

Question 112

Multiple Choice

Raul borrowed $1,000 from Marta 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 Marta received?


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

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