Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You borrowed $50,000 to help pay exorbitant tuition at7.1% interest to be repaid 10 years later. The CPI was87when you borrowed the money and is105now

You borrowed $50,000 to help pay exorbitant tuition at7.1% interest to be repaid 10 years later. The CPI was87when you borrowed the money and is105now when you are repaying 10 years later.

What was your ex post real interest rate on the loan? (You can approximate with the Fisher equation. Give your answer as a decimal, so 4% would be 0.04.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

6th edition

978-113318912, 1133189121, 978-1133189121

Students also viewed these Economics questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago