You just borrowed $15,000 from a finance company to start a business. If you are required to repay $16,800 interest and principal in one year, what is the nominal interest rate that the finance company is charging? If inflation is 2.5%, what is the expected real rate of interest?

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A: Interest Earned = $1500 -$1100 Interest Earned =$400

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Q: . Suppose you have a bank account into which you make $100 deposits each month. You find a bank…

A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months

Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…

A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate =  2505,000×100%=5%

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Q: If you deposit in a bank $200 today, $250 a year from now, $150 in the second year and $300 in the…

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Q: You just borrowed $15,000 from a finance company to start a business. If you are required to repay…

A: The objective of the question is to calculate the expected real rate of interest given the amount…

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Q: You borrow $175,000; the annual loan payments are $10,120.27 for 30 years. What interest rate are…

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Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the…

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Q: you expect to have $3, 000 in one year. A bank is offering loans at 11% interest per year. How much…

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Q: You expect to have $12,000 in one year. A bank is offering loans at 5.5% interest per year. How much…

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Q: Suppose you put $1000 in an account today and you need to have $6727.5 in the future.  If the bank…

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