Business, 06.01.2020 18:31, 20vmiller

You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fixed rate for exactly one year. the lender (correctly) assumes that inflation will be 2 percent this year. based on the above information and assuming you adhere to the terms of the loan, you will pay back the lender exactly which will represent of purchasing power.

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You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fix...