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Suppose you are about to borrow $20000 for four years to buy a new car. Which of these situations would be preferred?

A. The interest rate on the loan is 18 %, and the annual inflation rate over the next four years is expected to average 9 %

B. The interest rate on the loan is 5 %, and the annual inflation rate over the next four years is expected to average 1 %.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92859604

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