In a Recessionary Economy, Interest Rate on Deposits Can Be

Multiple Choice

In a recessionary economy, interest rate on deposits can be 0 percent. However, Raymond has an investment of $25 000 now, and in three years it will mature and pay Raymond $32 000. What is the approximate rate of return on his investment?

A) 8) 3 percent
B) 8) 6 percent
C) 8) 9 percent
D) Insufficient information to calculate this question