10. With the real rate at 3%, most loans were made at 10% last year....

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Accounting

10. With the real rate at 3%, most loans were made at 10% last year. This year interest rates
have declined to 8%. What was the expected inflation rate last year?
A.5%
B.2%
C.7%
D.8%
()11. Adam deposits $10,000 in a savings deposit paying 4%, compounded monthly. What
amount would he have at the end of seven years?
A. $13,159
B. $13,179
C. $13,225
D. $13,325
()12. If you want to have $20,000 in your saving account in 5 years, how much should you
deposit today? Assume the interest rate will be 8% compounded annually.
A. $14,286
B. $13,612
C. $13,537
D. $12,000
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