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rebecca borrowed $100 from her cousin at the rate of 7 percent per year. if the inflation rate was 3 percent that year, what is her cousin's actual rate of return on the loan? a. 3 percent b. 4 percent c. 6 percent d. 7percent e. 10 percent

Respuesta :

The real profit or loss an investor receives on an investment determines the rate of payoff, Rebecca cousin's true rate of return will be 4%.

The correct answer is B

What exactly does "rate of return" mean?

The percentage change mostly in value of a portfolio is represented by the average return. Expecting, for instance, that you get a 10% annual rate of return means you're assuming that the investment's value will rise by 10% annually.

What does a favorable return rate mean?

The majority of investors would consider a long-term return on investment in the stock market to be 10% or more on average annually. Although this is an average, keep in mind that. In other years, returns will be lower or even negative.

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