Question
I obtained a loan of $8,000 many years ago. How much do I have to repay today in view of inflation?
Answer
The amount to be repaid should be the amount of gold which the $8000 could procure on the date the loan was given. If for example, the $8,000 could procure three ounces of gold on the date the loan was given, then when it is repaid, three ounces of gold or its current value should be given.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 10
- PDF page
- 11