Multiple Choice
Tony lent Dave $1,000 for one year with the understanding that Dave would repay $1,070.If the actual inflation rate was 7 percent,what was the real rate of interest Tony received?
A) 14 percent
B) 7 percent
C) 4 percent
D) 0 percent
E) -7 percent
Correct Answer:
Verified
Correct Answer:
Verified
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