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Fied's expects to get a return of $20\%$ on all of his investments. The net present value of his most recent investment was $$3,500.$ What does this mean about his actual rate of return?

Multiple Choice

Fred's rate of return was greater than $20\%.$

Fred's rate of return was less than $20\%.$

We don't have enough data to determine Fred's rate of return.

Fred's rate of return was equal to $20\%.$