Loretta Agrees to Lend Ted $500,000 to Buy Computers for His

question 25

Essay

Loretta agrees to lend Ted $500,000 to buy computers for his consulting firm.They agree to a nominal interest rate of 8%.Both expect the inflation rate to be 2%.
(a)Calculate the expected real interest rate.
(b)If inflation turns out to be 3% over the life of the loan,what is the real interest rate? Who gains from unexpectedly high inflation,Loretta or Ted?
(c)If inflation turns out to be 1% over the life of the loan,what is the real interest rate? Who gains from unexpectedly low inflation,Loretta or Ted?

Identify customer service objectives and strategies to improve customer satisfaction and loyalty.

Understand the importance of employee empowerment in improving customer service.

Recognize the use of technology in tracking and analyzing customer behaviors and preferences.

Understand how performance measurements are used to assess the effectiveness of customer service and CRM programs.