What is the total amount

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Suppose yamini $3,000 from her mother, agreeing to pay him back the $3,000 plus 5 percent nominal interest in 1 year. Assume inflation over the life of the contract is expected to be 2.25 percent.

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What is the total amount John would have to pay his father back in a year? How much of the interest payment is the result of the real rate of interest?

Reference no: EM133059608

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