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

Q: If the inflation rate is 12% and the CPI for 2019 is 250 Calculate the CPI for 2020

A: The information being given is:- Inflation rate = 12% = 0.12  CPI for 2019 = 250 We have to…

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: Inflation The consumer price index (CPI) of a certain country s given by I(t) = -0.02t³ + 0.4² +126…

A: We have  given CPI equation for t=0, 1, 2, 3 and 4

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

A: The information being given is:- Real interest rate = 3% Inflation rate = 1.8% We have to calculate…

Q: An animal farmer has 100 cows and each year there are 10 new born calfs (buzagı). That is, his…

A: It is given that the farmer has 100 cows and each year 10 new born calves’ are there which means…

Q: The value for nominal interest rate is 30% and the value for inflation is 3%  What is the real…

A: # Real interest is the difference between nominal interest rate and inflation rate.

Q: If inflation is 2% and Nominal interest rate is 2.6%  Find real interest rate

A: Real interest rate = nominal interest rate - inflation rate.

Q: What will be the real interest rate if:- Nominal interest rate = 5%  Inflation rate = 3.3%

A: The data presented in the above question is:- Nominal interest rate = 5%    Inflation rate = 3.3%…

Q: The value of real interest rate is 3.2% and the value of inflation is 2% Calculate nominal interest…

A: According to the above given question, the values given are:- Real interest rate = 3.2%  Value of…

Q: Economy of Pakistan is facing fluctuations in stock market. Financial analysts want to state the…

A: Inflation refers to the rising prices of goods and services continuously. Average value refers to…

Q: You deposit $800 in a savings account and one year later you have $864. At the same time, the CPI…

A: The nominal interest rate is the rate you pay on a loan or you receive on a deposit. The real…

Q: If inflation is 1% and nominal interest rate is 9%  Calculate real interest rate

A: It's given in the question that:- Inflation = 1%  Nominal interest rate = 9% Thus we need to…

Q: The apparent interest rate is 9.18% and the real interest rate is 6%. What is the inflation rate?

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

Q: If in the banking sector the nominal interest rate is 3% and inflation rate is 1.7%  Calculate what…

A: The information being given is:- Nominal interest rate in banking rate = 3% Inflation rate = 1.7% We…

Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: The difference b/w the effective-interest rate(ER) and the nominal-rate(NR) is that the NR does not…

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: Explain the concept: nominal interest rate

A: Interest rate is the a prescribed percentage that is supposed to be paid by the borrower to the…

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: First month's shopping cart total is 565.54$ (base month) Second month's shopping cart total is…

A: Given information, Sales in base month: $565.54 Sales in second month: $568.19 To find: inflation…

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: If inflation is 0% and the real interest rate is 3.3% Calculate nominal interest rate

A: The data presented in the question above is:- Inflation = 0% Real interest rate = 3.3% We need to…

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: Mary will earn $42,544 this year and $21,839 next year. The real interest rate is 15% between this…

A: The intertemporal budget constraint shows the amount of consumption desired by the households in two…

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: The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1 =…

A: A consumer price index measures changes in the price level of a weighted average market basket of…

Q: The__________________ is the nominal interest rate minus the rate of inflation.   a)annualized…

A: Interest rates play an important role in the economy. The nominal and real interest rates are the…

Q: Deposit 2000 for one yews nominal interest rate is 8% during year inflation is 2.5% comput the real…

A: Inflation: Inflation is a word used in economics to describe a situation in which the prices of…

Q: B. Calculate for the Inflation Rate on the given period. 1. At the end of 2012, the CPI equaled 698.…

A: Inflation rate refers to the change in the general price level over a period of time. Inflation rate…

Q: What is the inflation rate from 2010 to 2011 if CPI2010 = 150.3 and CPI2011 = 155.5 ?

A: Inflation rate =((CPI of the year -CPI of last year)/CPI of last year)*100 Inflation rate between…

Q: If the CPI for 2012 is 266 and the CPI for 2013 is 320 Find inflation rate

A: The information being given is as follows:- CPI for 2012 = 266 CPI for 2013 = 320  Using this we…

Q: be paid back in a year at 5% interest,

A:

Q: Using the table below, find the real value of a payment of $2,500 to be recelved each year given the…

A: Real value of $2,500 in year N = $2,500 x (100 / CPI in year N) Real value, 2016 ($) = 2,500 x (100…

Q: A basket of goods and services $340 in the year 2015, $350 i assume the base year is 2015. The…

A: Inflation refers to the general increase in the price level of goods and services in an economy. It…

Q: Find inflation rate if real interest rate is 3% and nominal interest rate is 4.3%

A: The information being given is:- Real interest rate = 3% Nominal interest rate = 4.3% We have to…

Q: If Inflation is 2% and nominal interest rate is 4% Calculate real interest rate

A: The data presented in the question is :- Inflation rate = 2%  Nominal interest rate = 4% We need to…

Q: real interest rate

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

Q: A loan has an interest rate of 8%, and the inflation rate is 2.4%. What is the loan’s real interest…

A: A real interest rate is interest rate adjusted to remove the effects of inflation and gives the real…

Q: Inflation The consumer price index (CPI) of a certain country is given by I(t) = -0.02t³ + 0.4² +126…

A: Given CPI equation,  I(t) = -0.02t3 +0.4t2 +126 for  t = 0, 1, 2, 3, and 4

Q: CPI (as of December Inflation rate (%) 31 of the year) 124.5 Year |Not applicable for 2013 2013 2014…

A: CPI:- The Consumer Price Index refers to a measure of the average change over time in the prices…

Q: Hyperinflation has struck your country! Over the past year the price of a loaf of bread has…

A: According to the question, it is given that : Hyperinflation has struck the country. The price of a…

Q: Suppose the CPI last year is 121 and the CPI this year is 137. The CORRECT method to calcufate the…

A: A continuous increase in the general price level is referred to as inflation.

Q: If the rate of inflation is 5.7 %​, what nominal interest rate is necessary for you to earn a 2.2 %…

A: The nominal interest rate (or money interest rate) is the percentage increase in money you pay the…

Q: You deposit $600 in a savings account and one year later you have $654. At the same time, the CPI…

A: Given that,   Deposit (P) = $600. Amount after one year (A) = $654. Time period (t) = 1 year

Q: 52. Retirees have their benefits adjusted annually by the to compensate them for inflation. A. wage…

A: Inflation is the rate at which prices rise over a specific time period. Inflation is often defined…

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%…