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On January 1, 2008, Edward Invested $10,000 at 5 Percent

Question 58

Multiple Choice

On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.


A) -5
B) 0
C) 5
D) 10

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