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3. At the beginning of 2015 you have to decide between purchasing two different assets, A and B. That year the central bank announces that
3. At the beginning of 2015 you have to decide between purchasing two different assets, A and B. That year the central bank announces that the nominal interest rate is 10% and will be fixed in 2016, 2017 and 2018. Examine the following table: Asset A Asset B Year Inflation (%) Income (Tk.) (re)Payment (Tk.) Income (Tk.) (re)Payment (TK.) 2015 0 20,500 10,000 0 5,000 2016 4 25,600 12,000 0 5,000 2017 5 28,400 14,000 33,000 5,000 2018 6 29,700 16,000 45,000 5,000 Which asset should you purchase? Show how you arrived at your
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