Homework question help

Business & Finance
Tutor: None Selected Time limit: 1 Day

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)

 

Jul 2nd, 2015

Thank you for the opportunity to help you with your question!

Real Interest rate= Nominal Interest rate - Expected Inflation Rate

Expected Inflation Rate= Nominal Interest Rate - Real Interest Rate

so,

13.75 -7.05= 6.70

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 2nd, 2015

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