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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.)
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