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An Investment Today of $25,000 Promises to Return $10,000 Annually

Question 9

Multiple Choice

An investment today of $25,000 promises to return $10,000 annually for the next 3 years.What is the real rate of return on this investment if inflation averages 6% annually during the period?


A) 3.49%
B) 9.78%
C) 4.84%
D) 6.38%

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