Multiple Choice
One year ago, you bought a bond for $40,000.Today, you received the $40,000 principal back plus an interest of $2,000.If the inflation rate over the last year was 3 percent, calculate your real return (Round off your answer to the nearest percentage point) .
A) 2 percent
B) 3 percent
C) 4 percent
D) 5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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