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Question - Josh Inc. borrowed $40,000 from Star Bank and agreed to re-payamount of interest the loan as a lump sum in five years. The payment will include both principal and interest. The interest rate on the loan is 12% compounded quarterly.
Calculate the Josh Inc. will pay to StarBank when the loan matures in five years.
You will need to use the time value of money table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to week 12. Click on the link labeled present & future value table factors. No credit will be awarded for this question using a means other than these posted table factors to answer this question.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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