Wednesday, October 28, 2009

If provided the nominal rate of interest of 14.2% and the anticipated rate of inflation of 5.5% what

algebraic real rate of interest



If provided the nominal rate of interest of 14.2% and the anticipated rate of inflation of 5.5% what is the?

(1+ x)(1+0,055)=(1+0,142)



x= 8,24%



If provided the nominal rate of interest of 14.2% and the anticipated rate of inflation of 5.5% what is the?

14.2-5.5=8.7=real rate

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