Spencer took a 9 percent one-year fixed-rate loan to buy a new car. he expected to pay a real interest rate of 5 percent.
if at the end of the year spencer only paid a 3 percent real interest rate, which of the following is true?

a. the actual inflation rate was 6%
b. the nominal interest rate was 5%
c. the actual inflation rate was 4%
d. the nominal interest rate was 3%

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.