A bank is lending $20,000 today, to be repaid in a lump sum at the end of

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A bank is lending $20,000 today, to be repaid in a lump sum at the end of 20 years with interest at 8.5% (= im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 4% annually.

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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: May 17, 2016 06:01 AM

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A bank is lending $20,000 today, to be repaid in a lump sum at the end of

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In 10 years the investor will receive the original 1...View the full answer

Engineering Economy

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