Fast please! Final answer only!! No need of explanation A bank offers an annual 2096 interest rate on time deposits. If the annual inflation rate is 15%, please find the real interest rate (please use the moreaccurate way in real value calculations, not the approximate one).

here we calculate the real interest rate which are as follow-

Answered: A bank offers an annual 20% interest…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 37P: Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time...

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A bank offers an annual 20% interest rate on time deposits. If the annual inflation rate is 159%6, please find the real interest rate (please use the more accurate way in real value calculations, not the approximate one).