Solved

Suppose That You Borrow $10,000 for One Year, and at the End

Question 418

Multiple Choice

Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,450. Also, during that year inflation was 2.5%. The real interest rate is


A) 12.0 percent.
B) 7.0 percent.
C) 4.5 percent.
D) 2.0 percent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q413: For which type of organization is unlimited

Q414: Present value is<br>A) the value of a

Q415: The nominal rate of interest is 3%

Q416: If land is reallocated or switched from

Q417: According to efficient market theory, which of

Q419: Accounting profits are total revenues minus<br>A) all

Q420: A firm is considering three projects. Each

Q421: An entrepreneur is<br>A) the rate of return

Q422: All of the following are advantages of

Q423: When an entrepreneur invests his own financial