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Imagine you borrow $ 4 5 0 from your roommate, agreeing to pay her back $ 4 5 0 plus 7 percent nominal interest in
Imagine you borrow $ from your roommate, agreeing to pay her back $ plus percent nominal interest in one year. Assume inflation over the life of the contract is expected to be percent. What is the total dollar amount you will have to pay her back in a year? What percentage of the interest payment is the result of the real rate of interest? Do not round intermediate calculations. Round answers to decimal places, eg or
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Total dollar amount
$
Approximate percentage of interest attributable to the real rate of interest
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