Question
Suppose that you borrow $5100 and you need to repay $5508 after a year. Assume that the inflation rate is 5% per year. What is
Suppose that you borrow $5100 and you need to repay $5508 after a year. Assume that the inflation rate is 5% per year.
What is the precise real interest rate?
Answer for the precise real interest rate (two decimal places): ___________
Calculation steps:
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Financial Management An Introduction
Authors: Jim McMenamin
1st Edition
0415181623, 9780415181624
