You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result, you will receive ________ at the end of the year, but that money has a purchasing power of ________.
A) $5,050; $5,025
B) $5,100; $5,050
C) $5,500; $5,250
D) $6,000; $5,500
E) $5,500; $6,000
Correct Answer:
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