If a government which owned a company N10,000 in 19196 paid the debt fully in 1985 when the value of money has depreciated by 20 Percent , such a government...

If a government which owned a company N10,000 in 19196 paid the debt fully in 1985 when the value of money has depreciated by 20 Percent , such a government had

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If a government owed a company N10,000 in 1966, and paid off the debt fully in 1985, when the value of money had depreciated by 20 percent, it means that the government had gained. This is because the value of money in 1985 was 20 percent less than the value of money in 1966. Therefore, the government was able to pay off the debt with money that was worth less than the money it borrowed, effectively paying less than N10,000 in today's value. This is a common occurrence during periods of inflation, where the value of money decreases over time.