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Social Studies, 13.10.2019 16:30 ptrlvn01

Suppose you want to take out a $5,000 loan for one year. five banks each charge a nominal interest amount for the loan. which of the following loans represent the best deal for you?
a. bank a charges real interest of $400 and uses an expected inflation rate of 5% during that period
b. bank b charges real interest of $350 and uses an expected inflation rate of 6% during that period
c. bank c charges real interest of $390 and uses an expected inflation rate of 5.1% during that period
d. bank d charges real interest of $300 and uses an expected inflation rate of 7% during that period
e. bank e charges real interest of $405 and uses an expected inflation rate of 4.9% during that period

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