Respuesta :
The real interest rate did the bank expect to earn from your loan is 0.02 = 0.2 %.
Providing the following details:
Interest rate nominal = 5%
3% inflation rate
The following formula must be used to determine the real interest rate:
Nominal interest rate minus inflation equals real interest rate.
0.05 to 0.03 percent real interest rate
Real interest rate = 0.02 and equals 2%
The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount. Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD). The interest received on these deposit accounts is measured in annual percentage yields (APY).
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