Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / What is the total dollar amount you will have to pay her back in a year

What is the total dollar amount you will have to pay her back in a year

Interest rates: Imagine you borrow $500 from your roommate, agreeing to pay her back $500 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.25 percent. What is the total dollar amount you will have to pay her back in a year? What percentage of the interest payment is the result of the real rate of interest?

May 17 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions