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Is rate of retur the same as interest rate?
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- Which of the following event(s) would cause the rental yield of a flat to increase? A. An increase in interest rateB. A decrease in life of the flatC. An increase in future rentD. A & CE. None of the abovehow did u get 0.92Y in the brackets ?A loan has an interest rate of 8%, and the inflation rate is 2.4%. What is the loan’s real interest rate adjusted for inflation?
- Waleed is lending Emad $1,000 for one year. The CPI is 1.40 at the time the loan is made. They expect it to be 1.54 in one year. If Waleed and Emad agree that Waleed should earn a 6% real return for the year, what is the nominal interest rate?If the rate of inflation is 5.7 %, what nominal interest rate is necessary for you to earn a 2.2 % real interest rate on yourinvestment?How is the rate-of-return easier to understand?