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Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz
Edition 12ISBN: 978-1259070969Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz
Edition 12ISBN: 978-1259070969 Exercise 4
Suppose you borrow $6,000 in student loans at a 5 percent annual interest rate in 2013.
a. How much will you owe after 10 years of accumulating debt
b. If inflation is 6 percent per year over this period, how much will you owe after 10 years in real 2013 dollars
c. Who is the loser in this scenario, you or the bank
a. How much will you owe after 10 years of accumulating debt
b. If inflation is 6 percent per year over this period, how much will you owe after 10 years in real 2013 dollars
c. Who is the loser in this scenario, you or the bank
Explanation
Verified
Verified
a)
Future value refers to how much amoun...
Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz
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