Pls show full steps correct Imagine you borrow $700 from your roommate, agreeing to pay her back $700 plus 9 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 5.39 percent. What isthe total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Roundanswers to 2 decimal places, e.g. 17.54.)Excel Template(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statementfrom this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)Total dollar amountApproximate percentage of interest attributable to the real rate of interest$76340.11%

The real rate of return accounts for inflation to determine the true increase or decrease in the…

the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? (D answers to 2 decimal places, e.g. 17.54.)

the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? (D answers to 2 decimal places, e.g. 17.54.)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Pls show full steps correct

Imagine you borrow $700 from your roommate, agreeing to pay her back $700 plus 9 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 5.39 percent. What is
the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest? (Do not round intermediate calculations. Round
answers to 2 decimal places, e.g. 17.54.)
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement
from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)
Total dollar amount
Approximate percentage of interest attributable to the real rate of interest
$
763
40.11
%

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