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

question 31

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You borrow money to buy a house in 2012 at a variable interest rate of 6.5%.Your interest rate is always 2% more than the rate of inflation.By 2016,the inflation rate has risen to 8.5%.Considering only your mortgage,is inflation good news or bad news for you?


Definitions:

Mg

An abbreviation for milligrams, a unit of mass equal to one thousandth of a gram.

Drug Concentration

The amount of a substance (drug) present in a specific volume of solution, important in dosing and pharmacokinetics.

Estimated Dose

A calculated approximation of the amount of a substance or medication to be administered.

G

In a medical context, often an abbreviation for "gram," a unit of weight in the metric system.

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