The Consumer Price Index had a value of 218.8 in 2018 and a value of 226.23 in 2019. a. What was the inflation rate in 2018? b. If you borrowed $2500 in 2018 at an annual interest rate of 5.2%, what was the real interest rate of your loan based on the inflation rate in 2018 that you calculated above?

The Consumer Price Index had a value of 218.8 in 2018 and a value of 226.23 in 2019. a. What was the inflation rate in 2018? b. If you borrowed $2500 in 2018 at an annual interest rate of 5.2%, what was the real interest rate of your loan based on the inflation rate in 2018 that you calculated above?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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