Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

You take out student loans to help pay for your degree at a 5% annual interest rate. Assume the bank expected inflation to
average 3% per year.
a. What real interest rate did the bank expect to earn from your loan?
The bank expected to earn
b. What happens if inflation is actually 5% per year?
If inflation is actually 5%, then the bank will earn
c. If inflation is higher than expected, then
better off.
better off. If it is lower than expected, then
% per year..
% per year

Sagot :

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.