IDNLearn.com provides a comprehensive platform for finding accurate answers. Find in-depth and trustworthy answers to all your questions from our experienced community members.
You take out student loans to help pay for your degree at a 5% annual interest rate. Assume the bank expected inflation to
average 3% per year.
a. What real interest rate did the bank expect to earn from your loan?
The bank expected to earn
b. What happens if inflation is actually 5% per year?
If inflation is actually 5%, then the bank will earn
c. If inflation is higher than expected, then
better off.
better off. If it is lower than expected, then
% per year..
% per year
Sagot :
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Your questions find answers at IDNLearn.com. Thanks for visiting, and come back for more accurate and reliable solutions.
