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Category > Business & Finance Posted 22 May 2017 My Price 11.00

Suppose you are about to borrow

Suppose you are about to borrow $15,000 for four years to buy a new car. Briefly explain which of these situations you would prefer to be in:

 

 a. The interest rate on your loan is 10%, and you expect the annual inflation over the next four years to average 8%.

b. The interest rate on your loan is 6%, and you expect the annual inflation rate over the next four years to average 2%.

 

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Homework Helper
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Status NEW Posted 22 May 2017 02:05 PM My Price 11.00

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