Solved

If You Pay $1,980 Annually on an $18,000 Loan and the Rate

Question 172

Multiple Choice

If you pay $1,980 annually on an $18,000 loan and the rate of inflation is 3 percent, then the


A) real rate of interest is 8 percent
B) nominal rate of interest is 8 percent.
C) real rate of interest is 11 percent.
D) nominal rate of interest is 14 percent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents