Essay
An individual plans to borrow a sum of $10,000 for 1 year.The nominal interest charged on the borrowed sum is 6 percent.
a)If he takes the loan,what will be the interest amount and the total amount that he would have to pay at the end of the year?
b)If the rate of inflation in the economy is 10 percent,then is it a good idea for him to take the loan? Why or why not?
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a)If the individual takes the loan,he wi...View Answer
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