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

Q: 2. The inflation rate of Alternatown is currently 3.75%, and the real interest rate is currently…

A: Here, some information about inflation rate, real interest rate and nominal interest rate is given…

Q: Evan borrowed USD 40,000 at the nominal interest rate of 7% per year for a period of 12 months.…

A:

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: An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent.…

A: The nominal rate of return is the amount of money generated by an investment before factoring in…

Q: Find the value of inflation if real interest rate is 0 and nominal interest rate is 4.6%

A: We are given that:- Real interest rate = 0% Nominal interest rate = 4.6% Note- Real interest rate is…

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 you are looking for a 4% real return (inflation-free interest) on your investment, would you be…

A: The nominal interest rate can be calculated as follows: Thus, the nominal interest rate is 9.2%

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: By using the year end CPI from January to December calculate the inflation rate from 2000 to 2004.…

A: The Consumer Price Index (CPI) is an activity that takes a gander at the weighted average of given…

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: 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: rate of​ inflation

A: The inflation calculates the increment in price level. There are different types of inflation:…

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: Joao wants to earn a real annual interest rate on his investment of at least 8%. If the annual rate…

A: Jao wants to earn minimum real rate of return on his investment which is called minimum acceptable…

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: 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: 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 6% and inflation is 8%, what is the real interest rate?

A: Given data: Nominal Interest rate = 6% Inflation = 8%

Q: Calculate inflation rate if the value of real interest rate is 3.1% and Nominal Interest rate is 4%

A: The given information is as follows:- Real interest rate = 3.1% Nominal interest rate = 4% We know…

Q: Calculate the value of nominal interest rate of inflation is 0 and real interest rate is 6%

A: The information given to us is that  Real interest rate in the economy Is 6% Inflation is 0% We have…

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: Suppose you make a loan of $100 that will be repaid to you in 1 year.if the loan is denominated in…

A: Nominal intrest is total of real intrest and rate .Increase in rate can cause increase in nominal…

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: 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 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: Given the following information Year Cost of a Basket of Goods 2019 $8 2020 $14 2021 $20 Use the…

A: In the field of economics, inflation is generally defined as the increase in the price level in the…

Q: Calculate the rate of inflation or delation between 2014 and 2015.

A: Cost of basket, 2014 = 4 x 4 + 6 x 3 + 2 x 5 = 16 + 18 + 10 = 44 Cost of basket, 2015 = 5 x 4 + 8 x…

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: Problem 1: Consider an economy that produces only chocolate bars. In year 1, the quantity produced…

A: Answer: Note: since no specific method is given here GDP deflator will be used to calculate the…

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: 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: 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: a) Find the inflation rate in 2010, if the 2009 is the base year? b) Find the increase in the cost…

A: The inflation rate is the rate at which the prices of products and services rise in an economy.

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: Mary deposits $3,000 into a bank account that pays an annual interest rate of 10%. After 3 years,…

A: In an inflationary economy, unevenly growing prices eventually diminish some customers' purchasing…

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: 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%…