You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. What is the nominal interest rate you and your sister agreed upon? 2% 3% 4% 5%
You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. What is the nominal interest rate you and your sister agreed upon? 2% 3% 4% 5%
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
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2. You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050.
What is the nominal interest rate you and your sister agreed upon?
2%
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3%
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4%
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5% |
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