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If the inflation rate is 6%, the cost of money is 10%, what interest rate will take care of inflation and the cost of money.​


please I need your help guys

Sagot :

Ebisidiidn

363.12% rate of interest can take care of the cost of money and inflation. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Using straight line method of depreciation, what is the book value after 5 years? If the inflation rate is 6%, cost of money is 10%, what interest rate will take care of inflation and the cost of money?