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10 lut wave, What is the TRR of the project? 19. If the inflation rate is 5%, and the real rate is 3%, what is the nominal ra
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Answer #1

Dear student, only one question is allowed at a time. I am answering the first question

19)

As per Fisher theory,

Real rate of interest = Nominal rate of interest - Inflation

So, Nominal rate of interest   = Real rate of interest + Inflation

= 3% + 5%

= 8%

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