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Author Question: You want to make a 10% real return on a loan that you are planning to make, and the expected ... (Read 73 times)

nelaaney

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  • Posts: 560

Question 1

If Mr. Garrison is paid an interest rate of 4% on his savings, but the inflation rate is 7%, the real interest rate Mr. Garrison earns is


◦ 28%.
◦ 4%.
◦ -3%.
◦ -7%.

Question 2

You want to make a 10% real return on a loan that you are planning to make, and the expected inflation rate during the period of the loan is 4%. You should charge a nominal interest rate of


◦ -6%.
◦ 6%.
◦ 10%.
◦ 14%.


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Marked as best answer by nelaaney on Apr 19, 2019

shaikhs

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nelaaney

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


debra928

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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