The Brazil debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Brazil is estimated to have 110 million people, with the work force of around 20%.
The Brazil debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose the government requires every earning individual to pay the debt by 2030, how much each of us would need to pay monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6% compounded daily, and we will start the payment by the end of 2022? The Brazil is estimated to have 110 million people, with the work force of around 20%.
Chapter22: International Financial Management
Section: Chapter Questions
Problem 2P
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The Brazil debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% yearly. Suppose the
government requires every earning individual to pay the debt by 2030, how much each of us would need to pay
monthly (annual payment amortized in 12 equal payments), assuming that inflation is 3%, the interest rate is 5.6%
compounded daily, and we will start the payment by the end of 2022? The Brazil is estimated to have 110
million people, with the work force of around 20%.
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