Calculate the nominal interest rate when real interest rate is 5% and inflation is 2%

Q: What is the real interest rate if the nominal interest rate is 7.73% and the expected inflation rate…

A: The real interest rate is the inflation-adjusted interest rate. It shows the real cost of funds from…

Q: Calculate inflation if real interest rate is 2% and Nominal Interest rate is 3.3%

A: The information being given is:- Real interest rate = 2% Nominal interest rate = 3.3% Inflation = ?

Q: In an economy inflation is 3% and the nominal interest rate is 3%  Calculate the real interest rate

A: The addition of inflation and real interest rate gives us the value of nominal interest rate Real…

Q: With the help of data given below, Calculate the rate of inflation for each year from 2014 to 2017…

A: Inflation is described as a rise in the general price level in the economy. With inflation, the…

Q: e consumer price index (CPI) is a fixed-weight index. It compares the price of a fixed bundle of…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The nominal interest rate is 12%. The inflation rate is 3%. The real interest rate is equal to %.

A: The interest rate is calculated as a percentage of the principal, or the amount borrowed, which a…

Q: In the first year, inflation is 2.75% and the nominal interest rate for both fixed and variable rate…

A: Real interest rate can be calculated using the two formulae shown below. The approximation formula…

Q: In which situation would you rather be a borrower? the nominal interest rate is 10%, the inflation…

A: The inflation in an economy is defined as the average rise in the level of prices in the economy.…

Q: Inflation rate is half the nominal interest rate prevailing in the market.  The Nominal Interest…

A: The information being given is:- Nominal interest rate = 3.6%  Also the inflation rate is half the…

Q: Find the inflation rate in the economy if the real interest rate is 4% and Nominal Interest rate is…

A: # in an economy we can easily find the prevailing inflation rate by using the fishers equation which…

Q: In an economy, the inflation rate and real interest rate are 1.8% and 3%  Find nominal interest…

A: Answer in step 2

Q: What would be the inflation rate in Alaska if Nominal interest rate is 2% and real interest rate is…

A: The data presented in the question above is:- We are given with the information of the economy of…

Q: Calculate real interest rate if Nominal Interest rate is 8.2% and inflation is 6.1%

A: According to the above given question, the values given are:- Nominal interest rate = 8.2%…

Q: Find the real interest rate prevailing if inflation is 2% and Nominal Interest rate is 3 times the…

A: The information given to us is:- Inflation = 2% Nominal interest rate = 3* inflation rate = 3*2 = 6%…

Q: The following table shows the UK consumer prices index for the years 2013-16 based on 2014=100. Year…

A: Inflation refers to the increase in the general price level from one year to another. It is measured…

Q: If the nominal interest rate on an asset is 10% and inflation is also 8%, what is the real interest…

A: The nominal interest rate is the percentage increase in money you pay the lender for the use of the…

Q: If the real rate of interest is 3% and the expected rate of inflation is 6%m calculate the nominal…

A: The interest rate generally refers to the amount paid to the lender in return for the borrowed money…

Q: What is the value of inflation when real interest rate is 6% and the nominal interest rate is also…

A: # The difference between Nominal interest rate and real interest rate gives us the value of…

Q: Suppose the annual nominal interest rate on bank certificate of deposit is 12%. How much is the real…

A: The expression that shows the relationship between the nominal interest rate, real interest rate,…

Q: Real interest rate is 3.1% and the inflation rate is 0.9% Calculate the value of nominal interest…

A: We are given that:- Real interest rate earned is = 3.1% Inflation rate = 0.9% We have to find the…

Q: Calculate inflation if real interest rate is 3% and the Nominal Interest rate is 5.3%

A: The given information is as follows:- Real interest rate = 3% Nominal interest rate = 5.3% We know…

Q: If the inflation rate 23% and real rate is 12%, what is the nominal interest rate? A. 37.76% B.…

A: Business have been of many types through ages. For example in agriculture, there is food business,…

Q: Q.1.9 If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was: (a) 106%;

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Q: The nominal interest rate is 3% in the economy. Shawn is deciding to give loan to his friend at this…

A: # If there is inflation in the economy, we can't have a good picture about interest rates by just…

Q: If nominal interest rate is 8.5% and the inflation rate is 3.6%  Calculate the real interest rate

A: The given information is as follows:- Nominal interest rate = 8.5%  Inflation = 3.6%

Q: Nominal interest rate is 13% and Inflation is 7%  Calculate the value of real interest rate

A: The information given to us is as follows:- The nominal interest rate is 13% Inflation = 7% We have…

Q: Calculate the inflation rate when Nominal Interest rate is 7% and real interest rate is 2.5%

A: # Due to inflation prevailing in the Market, the Nominal interest rate is actually lower and thus we…

Q: If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was:

A: CPI refers to the Consumer Price Index. It is a statistical measure of determining variation in…

Q: Calculate the value of inflation if real interest rate is 6.5% and the nominal interest rate is 8.2%

A: The information given to us is as follows:- Real interest rate = 6.5%  Nominal interest rate = 8.2%…

Q: Using the data in the table below, calculate the CPI and the inflation rate in each year using 2015…

A: The base year is 2015. The CPI, = (Price of the basket in a specific year / Price of the basket in…

Q: If inflation rate is 1% and nominal interest rate is 2.1%  What will be the real interest rate

A: The given information is as follows:- Inflation rate in the economy = 1% This shows the general rise…

Q: how are borrowers and lenders affected when the nominal rate is 9%, the inflation premiums on loans…

A: The nominal interest rate refers to the interest rate charged on loans without taking inflation into…

Q: Suppose for Candyland the cost of a CPI basket is worth $500 in 2016, and the same basket is worth…

A: Cost of basket of goods in 2016 = 500 $ Cost of basket of goods in 2017 = 600 $ a. CPI for base…

Q: In a particular year, the nominal rate of interest is 7% and the inflation rate is 3%. The real rate…

A: Real interest rate is the rate which is generally use for remove the effect of inflation , so here…

Q: If inflation is expected to​ increase,   A. the nominal interest rate will increase.   B.…

A: Real Interest Rate: The real interest rate is the rate that excludes or does not account the…

Q: The CPI in period 1 is 150 and the CPI in period 2 is 200. What is the rate of inflation between…

A: Consumer price index (CPI) measures the price change of a particular bundle of goods from different…

Q: real interest rate

A: Formula for Real Interest Rate: Real Interest Rate = Nominal Interest Rate - Inflation Rate

Q: The value of a price index in the base year is   0 100 200 The inflation rate The average cost of…

A: the price index refers to a normalized average of price relatives for a given class of products or…

Q: If inflation is 1% and Nominal Interest rate is 3.1%  Find the value of real interest rate

A: The information being given to us is as follows:- Inflation = 1% Nominal interest rate = 3.1% We…

Q: • If the nominal interest rate is 6% and the inflation rate is 3% then the real interest rate is: •…

A: Inflation rate is the increase in prices of goods and services. It helps in identifying the amount…

Q: Nominal Interest rate is 10% and the real interest rate is 7% Calculate the inflation levle.

A: # According to the fisher's equation we know that the real interest is given as the difference…

Q: The CPI differs from the GDP deflator in that the CPI O always indicates a higher rate of inflation…

A: The inflation refers to an increase in the general price level over time. There are several…

Q: If the inflation rate is 8 percent and the real interest rate is 6 percent, the nominal interest…

A: Answer: A (14 percent) Explanation: Nominal interest rate = Real interest rate + Inflation rate…

Q: In the economy, Nominal Interest rate is 2% and real interest rate is 1.5% Calculate inflation

A: We are given that:- Nominal interest rate = 2% Real interest rate = 1.5% We need to calculate…

Q: In 2018, the real interest rate was 6% and inflation was 1.2% Calculate nominal interest rate

A: The information being given is:- Real interest rate = 6%  Inflation rate = 1.2% This is the data for…

Q: Suppose the value of a price index is 50 in 2015 and 60 in 2016. What is the rate of inflation from…

A: The rate of inflation can be calculated by dividing the difference between current inflation and…

Q: In the market the real interest rate is 3% and nominal interest rate is 6.6%  Find inflation rate.

A: The data presented in the question is:- Real interest rate = 3%  Nominal interest rate = 6.6%…