If the rate of inflation is 5.7 %, what nominal interest rate is necessary for you...
If the rate of inflation is 5.7 %, what nominal interest rate is necessary for you to earn a 2.2 % real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The nominal interest rate is ____%. (Round to two decimal places.)
Homework Answers
(1+Nominal interest rate) = (1+inflation)(1+real interest rate)
(1+nomianl interest rate)=(1+0.057)(1+0.022)
Nominal interest rate = 8.03%
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