(Answered) The borrowed money at a fixed rate of 5 over 30 years to

Management Studies

The borrowed money at a fixed rate of 5% over 30 years to purchase a house

1. If the rate of inlation is 1%, what the real interest rate of the loan?

2. If the rate of inflation is 4%, what is the real interest rate of the loan? What if the rate was 10%

3. which one of the inflation rates is best for you in terms of the loan repayments? why?

4. Which one of the inflation rates is best for the bank? Why?

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