charati7882 charati7882

03-03-2018
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If the inflation rate was 3.00% and the nominal interest rate was 8.00% over the last year, what was the real rate of interest over the last year?

Respuesta :

04-03-2018

The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%

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