Lecture-22-why unit cost

Example convert to monthly interest annual rate 12

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Unformatted text preview: percent to fraction) (convert Components of Interest Components Safe Rate (about 2%) Inflation Rate (now around 4%) Risk Premium (depends on investment) Motivation Premium (usually small) Dealt with by Multiplication (1.02)(1.04)(1.09)(1.001) = 1.1574 15.74% If inflation is not included = Real Rate If inflation is included = Nominal Rate...
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This note was uploaded on 02/02/2013 for the course ECON 361 taught by Professor Paulbradley during the Spring '13 term at SIU Carbondale.

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