1. If real interest is 1.90% and inflation is 6.5% what is nominal int rate? 2....

Question

Question

1. If real interest is 1.90% and inflation is 6.5% what is nominal int rate?

2. Find value of investment of $1173 which earns returns of 0%, 14.8%, 7.3%, -12.3%, -2% over 5 yr?

3. If prices are expected to rise by 5.30% and int. rate is 7.8%, what is real int. rate?

4. How many times per year does an investment compound each year if it earns .29% each period and the EAR is 7.90%?

Answer 1

Answer #1

1)

Answer 2

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