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11Alexandr11 [23.1K]
2 years ago
7

Assume the CPI increases from 100 to 110. Explain the impact of this inflation (helped, hurt, not impacted) on each of the follo

wing:
A surveyor who took out a 5% fixed-rate loan last year to buy new equipment.
A bank that awarded a 6% fixed-rate loan to a couple buying their first home.
A company signs a contract to clean classrooms at a fixed rate for the next 5 years. The company does not have a labor contract with its employees.
A union worker who received a 10% cost of living adjustment.
A student who currently earns 2% interest on her savings account.
Business
1 answer:
mr Goodwill [35]2 years ago
8 0

Inflation is the act wherein the general price level of the goods and services have sustained. It is also has a tendency to reduce the value of money when it is too high, but it also depends on the interest rate if it’s higher. Therefore the answers of these would be:

 

a. Considering the fixed rate of the new equipment, it would gain 4% 

b. Due to the loan, 4% would be lost. 

c. Lack of the documentation of the employees would allow the company to lose.

d. The result would be unchanged.

e. <span>The result would be the loss of 8%</span>

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