question archive The real interest rate is 3
The real interest rate is 3
Subject:FinancePrice:2.86 Bought10
The real interest rate is 3.0% and the inflation rate is 5.0%. What is the nominal interest rate?
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| Nominal interest rate = ((1 + Real interest rate) * (1 + Inflation rate)) - 1 |
| Nominal interest rate = ((1 + 3%) * (1 + 5%)) - 1 |
| Nominal interest rate = 8.15% |
| Answer : 8.15% |
