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Your firm ecen y lent Arington Enter es S23 000 000 million for one year a an interest rate o 1200%. Inflation du ng he
Your firm ecen y lent Arington Enter es S23 000 000 million for one year a an interest rate o 1200%. Inflation du ng he years expected to be 3.20 6. Answer he follow ng questions to gauge the impact ofin a on on the eal interest to be paid. Round all answers to 2 decimal places.) a. How much interest income wil your firm receive from the transaction, calculated the traditional way? Interest income b. What is the approximate real rate of Approximate real rate of interest c. What is the real portion of the interest income? Real portion of interest income d. By how much will interest income be understated due to inflation? Understated interest interest
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