loader  Loading... Please wait...

Question(s) / Instruction(s):

An investor lends $15,000 today to be repaid in a lump sum at the end of 10 years with an interest rate of 8% compounded annually.

                a. What is the real rate of return if the general price inflation is 6% annually?

                b. What is the $15,000 repaid worth in today’s dollars?

Find Similar Answers by Subject

Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)

Expert's Answer
Download Solution:

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

Reach Us