132k views
10 votes
Assume you borrow money to buy a new car at 10 percent interest, and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent. If you are correct in your assumption, your real rate of interest on the car loan will be

User VeenarM
by
8.0k points

1 Answer

1 vote

Answer:

The answer is 2%

Step-by-step explanation:

Have a wonderful day

User Apoorva Chikara
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories