Question
7. Given: a $100, one year loan at real interest rate of 4%, only one consumption good: apple, current price $0.5/apple, and inflation rate of
7. Given: a $100, one year loan at real interest rate of 4%, only one consumption good: apple, current price $0.5/apple, and inflation rate of 11%, what should be nominal interest rate? Please answer the question using a chart as slide 60 in the class presentation (How to calculate PV presentation).
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
