Mary expects the inflation rate to be 5 percent, and she is willing to pay a real interest rate of 3 percent. Joe expects the inflation rate to be 5 percent, and he is willing to lend money if he receives a real interest rate of 3 percent. If the actual inflation rate is 6 percent and the loan contract specifies a nominal interest rate of 8 percent, then:

Mr. pines is considering buying a house and renting it to students. the yearly operating costs are $1,900. the house can be sold for $175,000 at the end of 10 years and it is considered 18% to be a suitable annual effective interest rate. if the house costs $100,000 to purchase, how much would you need to charge your tenants each year in rent? (assume a single payment for the years rent at the end of each year)