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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

1. Suppose there is a $60,000 loan, and the loan parties agree on a 6% rental rate for money, and 4% expected inflation rate.
1a. How much is the total compensation based on Fisher Effect?
1b. How much is the purchasing power loss on principal?
1c. How much is the compensation for the loss of purchasing power on interest?

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