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: 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: The CPI has risen from 130 to 115, what is the inflation rate?      10%     20%     15%…

A: Inflation rate helps in determining the percentage of increase in prices of goods and services.

Q: Calculate nominal interest rate in the economy when real interest rate is 7% and inflation rate is…

A: # in an economy given the nominal interest rate, and inflation rate the real interest is given to be…

Q: Explain the meanings of nominal interest rate and realinterest rate. How are they related?

A: The interest rate is the amount of payment that is charged by a lender on a borrower for the use of…

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: 12. Inflation a. Decreases everyone's nominal income. b. Decreases everyone's real income. c.…

A: Inflation means increase in average price level of goods and services. Nominal income is not…

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: 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: If the real interest rate is 8% and inflation is 4%  Calculate the nominal interest rate.

A: Below is the following information given in the question: *Real Interest Rate = 8% *Inflation = 4%

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: 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: If the inflation rate is 8% and cost of money is 12%, what interest rate will take care of the…

A: "Answer:

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: In year 1 the CPI is 181, and in year 2 the CPI is 195. If Dennis's salary was $95,000$95,000 in…

A: inflation is typically a broad measure, such as the overall increase in prices or the increase in…

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

A: Answer in step 2

Q: MCQS 1) The nominal interest rate is: a. not adjusted for current economic conditions b. adjusted…

A: 1) Real interest rate=Nominal interest rate-Inflation rateThus,Nominal interest rate=Real interest…

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 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 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: 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__________________ 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: For a real interest rate of 1% per month and an inflation rate of 1% per month, calculate the MARKET…

A: Answer: Given, Real interest rate= 1% per month Inflation rate= 1% per month Calculation: Market…

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: 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: 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: 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: Calculate inflation when nominal interest rate is 8% and the real interest rate is 2% Help!

A: # The formula for real interest in the economy is explained by the fisher's equation as:- Real…

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: --> Nominal Interest rate is 10%, inflation rate is 3% Find the real interest rate?

A: Given: Nominal Interest Rate = 10% Inflation Rate= 3%

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: Using the table below, find the real value of a $1200 payment and find the amount that this $1200…

A: The consumer price index measures the price changes in the market basket of goods and services…

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: 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: The Nominal Interest rate and inflation rate in an economy is same.  What will be the real interest…

A: The interest rate which is irrespective of inflation is known as nominal interest rate. And the…

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: 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: 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%…