1) you took a 1,000$ borrower, with an annual interest rate of 3 percent. how much money you will...
Post on 12-Jan-2016
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1) You took a 1,000$ borrower, with an annual interest rate of 3 percent.
• How much money you will have to return after one year?
• After 2 years?
• After 3 years?
• How much money you will have to return after a year, if the interest is paid every 6 month?
• After 3 years?
2) If the nominal interest rate is 4 percent, and you pay it every 4 month, what is the effective interest rate?
• If you pay it every quarter, what is the effective interest rate?
3) The inflation rate is 3 percent per year. The real interest rate is 5 percent per year. What is the nominal interest rate?
4) The inflation rate is 2 percent per year. The nominal rate is 10 percent. What is the real interest rate?
5) The nominal interest rate is 12%. The real interest rate is 4%.What is the inflation rate?
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