Required Return, and Inflation
Question and answers correctly
solved 2025/2026
Interest - correct answer ✔The percentage of the principal that a lender chargers a borrower for the
use of assets
What can interest by paid with? - correct answer ✔Usually cash, can be paid in vehicles, buildings,
consumer goods, or any other tangible asset
Annual Percentage Rate (APR) - correct answer ✔The annual interest rate that is charged for borrowing
money or that is earned through investment
Types of interest - correct answer ✔Simple and compounding
Simple Interest - correct answer ✔The interest earned only on the principal
How is simple interest calculated? - correct answer ✔principal x interest rate
Compounding Interest - correct answer ✔The interest on the principal plus the interest on earned
interest
How is compounding interest calculated? - correct answer ✔principal x (1 + interest rate) ^number of
periods - principal