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There is a 1-year loan of $50,000. Both parties agree on a 6% of rental price of the money on the loan Both anticipate a

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There is a 1-year loan of $50,000. Both parties agree on a 6% of rental price of the money on the loan Both anticipate a 4% inflation rate for the year. How much is the total compensation based on Fisher Effect? How much is the purchasing power loss on principal? (6 points)

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