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

Question

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The Answer of 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

You Lend $5,000 to a Friend for One Year at a Nominal