# economic

supposes that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### math

The effective rate of interest corresponding to a nominal rate 3%p.a payable half yearly is..?

2. ### math

Case: A borrower received a 30-year ARM mortgage loan for \$200,000. Rate caps are 3/2/6. The start rate is 3.50% and the loan adjusts every 12 months for the life of the mortgage. The index used for this mortgage is LIBOR (for

3. ### math

find the nominal rate of interest convertible quarterly which is equivalent to a nominal rate of discount of 6% p.a. convertible monthly

4. ### Finance: Mortgages

A borrower received a 30-year ARM mortgage loan for \$200,000. Rate caps are 3/2/6 (initial adjustment cap/periodic interest rate cap/lifetime interest rate cap). The start rate is 3.50% and the loan adjusts every 12 months for the

1. ### Finite Math

Find the effective rate of interest corresponding to a nominal rate of 6%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.)

2. ### MATH

a borrower received a 30 year ARM mortgage loan for 200,000. Rate caps are 3/2/6 the start rate is 3.50% AND the loan adjusts every 12 months for the life of the mortgage, The index used for this mortgage is LIBOR which for this

3. ### math

The effective rate of interest corresponding a nominal rate of 7% p.a. convertible quarterly is:

4. ### algebra

Andrew has a four-year college loan for \$20,000. The lender charges a simple interest rate of 5 percent. How much interest will he have to pay? simple interest = P × r × t

1. ### Banking Finance

Using the unabridged Fisher equation, determine the nominal interest rate if expected inflation is 4.25% and real interest rate is 1.75%.

2. ### math

A car dealer will sell you a used car for \$6,298 with \$798 down and payments of \$165.51 per month for 48 months. i found the total amount paid which is 8742.48 and interest paid is 2444.48 how do i find the interest rate?