Homework Question Help

User Generated

Ryyrel

Business Finance

Description

if the nominal rate of interest is 12.5 percent and the real rate of interest is 8.51 percent what is the expected rate of inflation? Round two decimal places

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

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

nominal rate = real interest rate + inflation rate.

or  inflation rate.= nominal rate - real interest rate ;

inflation rate = 12.5-8.51 = 3.99 %  (Answer)

Please find the solution enclosed here with .. In case of any doubt please feel free to ask… Do not forget to best my answer… If you are having some other problem please feel free to contact me for quick & quality services..


Anonymous
Excellent! Definitely coming back for more study materials.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags