José lent Antonio 10 new pens and 20 new watches on date zero, which on that date cost $50.00 and $2,000.00 each, respectively. At the end of the period, Antonio returned to José 5 new pens, 10 new watches and another $200.00. What is the outcome of the transaction for José if inflation in the period was 20% and the real interest rate is 10%?
José lent Antonio 10 new pens and 20 new watches on date zero, which on that date cost $50.00 and $2,000.00 each, respectively. At the end of the period, Antonio returned to José 5 new pens, 10 new watches and another $200.00. What is the outcome of the transaction for José if inflation in the period was 20% and the real interest rate is 10%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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José lent Antonio 10 new pens and 20 new watches on date zero, which on that date cost $50.00 and $2,000.00 each, respectively. At the end of the period, Antonio returned to José 5 new pens, 10 new watches and another $200.00. What is the outcome of the transaction for José if inflation in the period was 20% and the real interest rate is 10%?
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