contestada

If the nominal interest rate is 4. 00% and the rate of inflation is 2. 25%, what is the real interest rate? 1. 75% 4. 50% 6. 25% 9. 0%.

Respuesta :

abiolataiwo2015

Based on the information given the real interest rate is 1.75%.

Using this formula

Real interest rate =Nominal interest rate − Inflation rate

Where:

Nominal interest rate=4.00%

Inflation rate=2.25%

Let plug in the formula

Real interest rate=4.00%-2.25%

Real interest rate=1.75%

Inconclusion the real interest rate is 1.75%.

Learn more about real interest rate here:https://brainly.com/question/6106690

Otras preguntas