Suppose you borrow $1,000 of principal that must be repaid at the end of two years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent, Hint: Future value = Present value × (1 + Growth in prices)t, where t is the number of years evaluated.

Real value of loan repayment = Amount of loan × (1 + Real interest rate)t

Instructions: Round your responses to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers.

a. What is the real rate of interest on the loan?

%

b. What is the real value of the principal repayment?

$

c. Who loses, the debtor or the creditor?
multiple choice
Debtor
Creditor

Look at this system of equations. -3x + 3y = 12 y = x + 4 the solution set of this system is best explained by which of these statements? a) the graphs of the equations are the same line because the equations have the same slope and the same y-intercept. the system has infinitely many solutions. b) the graphs of the equations are parallel lines because they have the same slope but different y-intercepts. the system has no solution. c) the graphs of the equations are lines that intersect at one point because the equations have the same slope but different y-intercepts. the system has exactly one solution. d) the graphs of the equations are lines that intersect at one point because the equations have the same slope and the same y-intercept. the system has exactly one solution.