If Two Parties to a Loan Contract Agree That the Lender

question 7

Multiple Choice

If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan,and the inflation rate is 5 percent,what is the nominal interest rate?

• A)13 percent
• B)8 percent
• C)5 percent
• D)3 percent
• E)1 percent

---

Definitions:

Community Engagement

The practice of interacting with and involving members of a specific community in activities, projects, or discussions, aiming to build stronger relationships and achieve common goals.

Creative Mash Ups

involve combining or mixing different ideas, genres, or elements to create innovative or interesting outcomes.

Brand Communities

Groups of consumers who are bonded by their loyalty to a brand and engage in activities and social interactions around it.