Given the anticipated rate of inflation (i) of 2.13% and the real rate
Given the anticipated rate of inflation (i) of 2.13% and the real rate of interest (R) of 3.1%, find the nominal rate
of interest (r).
What will be an ideal response?
ANSWER
r = R + i + Ri
r = .031 + .0213 + (.031 )(.0213 )
r = .0523 + .0006603
r = .05296 = 5.3%
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.