Business, 17.12.2019 04:31 Teenabrewer28

Twelve years ago, the archer corporation borrowed $6,200,000. since then, cumulative inflation has been 80 percent (a compound rate of approximately 5 percent per year). a. when the firm repays the original $6,200,000 loan this year, what will be the effective purchasing power of the $6,200,000? (hint: divide the loan amount by one plus cumulative inflation.) (do not round intermediate calculations and round your answer to the nearest whole dollar.) b. to maintain the original $6,200,000 purchasing power, how much should the lender be repaid? (hint: multiply the loan amount by one plus cumulative inflation.) (do not round intermediate calculations and round your answer to the nearest whole dollar.)

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Twelve years ago, the archer corporation borrowed $6,200,000. since then, cumulative inflation has b...

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