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John Smith bought a house for $100,000 two years ago. The down payment was $20,000 and the remainder was financed at 6%interest ratefor 15 years. The annual inflation rate for the past 2 years has been 2% and it is anticipated to remain at this rate for the next 13 years. Compute the real interst rate for this loan.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9685509

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