How much will you owe after ten years of accumulating debt

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Reference no: EM13816916

Suppose you borrow $6,000 in student loans at a 5 percent annual interest rate in 2013.

a. How much will you owe after 10 years of accumulating debt?

b. If inflation is 6 percent per year over this period, how much will you owe after 10 years in real 2013 dollars?

c. Who is the loser in this scenario, you or the bank?

Reference no: EM13816916

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