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You Borrow Money to Buy a House in 2012 at a Fixed

question 195

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You borrow money to buy a house in 2012 at a fixed interest rate of 6.5%.By 2016,the inflation rate has risen to 8.5%.Considering only your mortgage,is inflation good news or bad news for you?


Definitions:

Profits

The income that remains after subtracting a company's expenses from its revenue.

Presumed

Accepted as true or existing based on probability or logical inference, often without direct evidence.

Sole Proprietors

A sole proprietorship is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Limited Liability

The legal principle that limits each owner's financial loss to the amount of money that individual has invested in a company.

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