You finance a new car with a 7 percent loan for 80 percent of the car value.

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You finance a new car with a 7 percent loan for 80 percent of the car value. The ination premium is 3.0 percent. If the risk premium is 2 percent, what is the pure rate using the multiplicative form?

Related Book For answer-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

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Posted Date: Apr 17, 2024 02:39 AM

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You finance a new car with a 7 percent loan for 80 percent of the car value.

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Expert Answer:

To calculate the pure rate using the multiplicative form well use the Fisher equation 1 textNominal ... View the full answer

Mathematical Applications for the Management Life and Social Sciences

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