You have $5,000 in a 36 month Certificate of Deposit that has an APR of 3.75%. If inflation averages 4.25% during these 36 months, what is the real return on your CD?

A) 3.75 percent
B) 8.0 percent
C) Negative .50 percent
D) Negative 8.0 percent


Answer: C

Business

You might also like to view...

A control plan to ensure input accuracy in payables processing is:

a. requisition confirmation to originating department b. match invoice, purchase order, and receiving report c. tickler file of payments due d. independent authorization to make payment

Business

When we mistake what we infer for what we observe, we experience ______.

Fill in the blank(s) with the appropriate word(s).

Business

How consumers' "intentions to buy the brand" varies with different price levels is best analyzed via ________

A) t tests B) one-way ANOVA C) ANCOVA D) regression

Business

The theory of comparative advantage states that an individual nation should concentrate on exporting the goods that it can produce most efficiently

Indicate whether the statement is true or false

Business