Mathematics, 16.01.2021 14:00, payshencec21

1. The nominal interest rate is8% and the inflation rate is 6%, what is the real rate of interest? 2. If the real rate of interest is 2%, and the expected rate of inflation is 3% then the nominal rate of interest is:

use this formula to solve 1&2,
1+ nominal interest rate = (1+ real interest rate) * (1+ inflation rate)

Answers: 2

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1. The nominal interest rate is8% and the inflation rate is 6%, what is the real rate of interest?...