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1 . Suppose there is a $ 6 0 , 0 0 0 loan, and the loan parties agree on a 6 % rental rate
Suppose there is a $ loan, and the loan parties agree on a rental rate for money, and expected inflation rate. a How much is the total compensation based on Fisher Effect? b How much is the purchasing power loss on principal? c How much is the compensation for the loss of purchasing power on interest?
Suppose there is a $ loan, and the loan parties agree on a rental rate for money, and expected inflation rate.
a How much is the total compensation based on Fisher Effect?
b How much is the purchasing power loss on principal?
c How much is the compensation for the loss of purchasing power on interest?
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