Suppose the bank give you a loan at 4.46% interest rate but the economy experiences inflation of 6.85%. What is the real interest rate that the bank earns from you for that given year?
Suppose the bank give you a loan at 4.46% interest rate but the economy experiences inflation of 6.85%. What is the real interest rate that the bank earns from you for that given year?
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 6WNG
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Suppose the bank give you a loan at 4.46% interest rate but the economy experiences inflation of 6.85%. What is the real interest rate that the bank earns from you for that given year? Answer this as a percentage and round your answer to two digits after the decimal without the percentage. ex. If you found the inflation rate to be 5.125%, answer 5.13.
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