If the nominal rate of interest is 13.75% and the real rate of interest is 7.05%, What is the expected rate of inflation? (Round to Two Decimal Places)

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nominal interest rate = 13.75%

real rate of interest = 7.05%

Expected rate of inflation =?

According to Fisher equation:

Expected inflation rate = nominal interest rate - real interest rate

= 13.75% - 7.05%

Expected inflation rate = 6.7%

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