Suppose that you decided to loan a friend $2660 for 1 year. After some discussion, you both agree that the fair rental price for loaning money is 4.12 percent and you both anticipate 5.10 percent inflation for the year. In the spirit of fair play, what is the fair compensation to lender? (For this problem we will be using a simplifying version of Fisher equation - formula 4.1 in the textbook Financial Institutions, Markets and Money). Answer Your