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This is a question I have....
Write a equation that defines the real interest rate. Use the equation to explain why unexpectedly high inflation redistributes income from creditors to debtors.
**I know that real interest
This site should help you:
http://economics.about.com/cs/interestra tes/a/real_interest.htm
Hope this helps and that you understand the equation better soon! ;-)
If 4000 is deposited into an account paying 3% interest compounded annual and at the same time 2000 is deposited into any account paying 5% interest compounded annual, how long until the two accounts have the same balance?
Thanks!
You can manipulate dennisjkane's equation to find the EXACT number of years until both accounts have the same balance. Hint: try to get it in the form a^n=b, where a and b are real numbers.
Video by Julie Harland yourmathgal This is a Word Problem you solve by writing an equation and factoring. Word Problem 7 - Investment problem-At ...
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Money and The Truth about America Sometimes the bank claims that even lending at that ratio is risky, but is willing to grant the loan at an interest rate greater than what borrowers with better ratios can qualify for. The higher interest rate is supposed to compensate the bank for the |
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But US interest rates are only part of the equation; the other side is the interest rates affecting the other countries you're dealing with. Specifically, the interest rate differential and expected changes create changes in investment decisions.
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