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A loan of 2000 is made at an interest rate of 7 when the

1. A loan of $2,000 is made at an interest rate of 7% when the inflation rate is 10% and paid in one installment after 1 year. Calculate the amount paid. What is the difference between this result and the result obtained if the inflation is ignored?

2. Explain the importance of price escalation in economic analysis.

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Electrical Engineering: A loan of 2000 is made at an interest rate of 7 when the

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Electrical Engineering: A loan of 2000 is made at an interest rate of 7 when the

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