Business
Business, 07.04.2020 16:24, isamar4348

Initially, Eleanor earns a salary of $800 per year and Darnell earns a salary of $300 per year. Eleanor lends Darnell $150 for one year at an annual interest rate of 20% with the expectation that the rate of inflation will be 2% during the one-year life of the loan. At the end of the year, Darnell makes good on the loan by paying Eleanor $180. Consider how the loan repayment affects Eleanor and Darnell under the following scenarios.

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Initially, Eleanor earns a salary of $800 per year and Darnell earns a salary of $300 per year. Elea...

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