If Inflation is 2% and nominal interest rate is 4% Calculate real interest rate

Q: Suppose the annual nominal interest rate is 7 percent and the inflation rate is 7 percent. If you…

A: This can be defined as a concept that shows a given nominal amount refers to how many units of…

Q: The price of an item in 2004 was $1.3. Use an inflation rate of 4% to calculate its price in 2030.…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: If the inflation rate is 12% and the CPI for 2019 is 250 Calculate the CPI for 2020

A: The information being given is:- Inflation rate = 12% = 0.12  CPI for 2019 = 250 We have to…

Q: Sam bought a rental property for 500,000 five years ago. He sold the property this year for…

A: Sam bought a rental property for $500,000 five years ago. He sold the property this year for…

Q: Find the value of inflation if real interest rate is 0 and nominal interest rate is 4.6%

A: We are given that:- Real interest rate = 0% Nominal interest rate = 4.6% Note- Real interest rate is…

Q: Year 2019 2020 2021 CPI 195 200 190 Show your work. The inflation rate from 2020 to 2021 = %.

A: An increase in the overall prices of a country or an increase in the cost of living is inflation.…

Q: Forty years ago, a gallon of gas cost $1.20. Today, a gallon of gas costs 2.60. Suppose that the gas…

A: The gallon gas cost $1.20, fourty years ago. The present cost of gas is $2.60. The gas price…

Q: The value for nominal interest rate is 30% and the value for inflation is 3%  What is the real…

A: # Real interest is the difference between nominal interest rate and inflation rate.

Q: If inflation is 2% and Nominal interest rate is 2.6%  Find real interest rate

A: Real interest rate = nominal interest rate - inflation rate.

Q: If the real interest rate is 8% and inflation is 4%  Calculate the nominal interest rate.

A: Below is the following information given in the question: *Real Interest Rate = 8% *Inflation = 4%

Q: alculate the real interest rate if Nominal Interest rate is 3% and inflation rate is 1%

A: # We know that the real interest rate is given by the difference between the nominal interest rate…

Q: If inflation is 1% and nominal interest rate is 9%  Calculate real interest rate

A: It's given in the question that:- Inflation = 1%  Nominal interest rate = 9% Thus we need to…

Q: The student has 30000 rubles and decides to save them or spend. If he puts money in the bank, in a…

A: Interest rate works two ways, i.e., it is the cost of borrowing for the borrowers, and also the rate…

Q: If in the banking sector the nominal interest rate is 3% and inflation rate is 1.7%  Calculate what…

A: The information being given is:- Nominal interest rate in banking rate = 3% Inflation rate = 1.7% We…

Q: Calculate the nominal interest rate when real interest rate is 6% and inflation rate is 0%

A: # Nominal interest rate less inflation rate gives us the real interest rate prevailing in the…

Q: Calculate real interest rate if Nominal Interest rate is 8.2% and inflation is 6.1%

A: According to the above given question, the values given are:- Nominal interest rate = 8.2%…

Q: Real Income Joshua Vermier of Sacramento, California, received a raise after his first year on the…

A: Income comprises salary, wages, gratuity, other profit, or incidental benefit of any kind obtained…

Q: What is the value of inflation when real interest rate is 6% and the nominal interest rate is also…

A: # The difference between Nominal interest rate and real interest rate gives us the value of…

Q: Calculate inflation if real interest rate is 12% and nominal interest rate is 15%

A: The Given information is as follows:- Real interest rate = 12% Nominal interest rate = 15% Inflation…

Q: If inflation is 0% and the real interest rate is 3.3% Calculate nominal interest rate

A: The data presented in the question above is:- Inflation = 0% Real interest rate = 3.3% We need to…

Q: Calculate inflation rate if the value of real interest rate is 3.1% and Nominal Interest rate is 4%

A: The given information is as follows:- Real interest rate = 3.1% Nominal interest rate = 4% We know…

Q: Calculate the value of nominal interest rate of inflation is 0 and real interest rate is 6%

A: The information given to us is that  Real interest rate in the economy Is 6% Inflation is 0% We have…

Q: If nominal interest rate is 8.5% and the inflation rate is 3.6%  Calculate the real interest rate

A: The given information is as follows:- Nominal interest rate = 8.5%  Inflation = 3.6%

Q: Nominal interest rate is 13% and Inflation is 7%  Calculate the value of real interest rate

A: The information given to us is as follows:- The nominal interest rate is 13% Inflation = 7% We have…

Q: f the nominal rate of interest is 13.94 % and the real rate of interest is 7.3 % what is the…

A: A nominal interest rate is the rate of interest before inflation is taken into account.The nominal…

Q: oger Marquez purchases a lot for $ 40,000 cash and plans to sell it after 5 years for $ 122,461. If…

A: Nominal Interest Rate =  Real Interest Rate and Inflation Rate (1 + i ) = ( 1 + r ) * ( 1 + c )…

Q: If inflation rate is 1% and nominal interest rate is 2.1%  What will be the real interest rate

A: The given information is as follows:- Inflation rate in the economy = 1% This shows the general rise…

Q: If the CPI for 2012 is 266 and the CPI for 2013 is 320 Find inflation rate

A: The information being given is as follows:- CPI for 2012 = 266 CPI for 2013 = 320  Using this we…

Q: In an economy the nominal interest rate is 6% and the inflation is 4%. Calculate real interest rate

A: Following are the given values: Nominal interest rate = 6% Inflation  rate = 4%

Q: Assume the economy is experiencing low and stable inflation, averaging 2% a year. Nadia loans her…

A: Nominal interest rate = real interest rate + Expected inflation rate 5 % = real rate + 2 % Real rate…

Q: Find inflation rate if real interest rate is 3% and nominal interest rate is 4.3%

A: The information being given is:- Real interest rate = 3% Nominal interest rate = 4.3% We have to…

Q: Sam invested $100 for a 1-year period. The inflation rate is 10%, and the nominal interest rate is…

A: Introduction: The term inflation refers to the overall rise in the prices of commodities. Moreover,…

Q: real interest rate

A: Formula for Real Interest Rate: Real Interest Rate = Nominal Interest Rate - Inflation Rate

Q: A loan has an interest rate of 8%, and the inflation rate is 2.4%. What is the loan’s real interest…

A: A real interest rate is interest rate adjusted to remove the effects of inflation and gives the real…

Q: If inflation is 1% and Nominal Interest rate is 3.1%  Find the value of real interest rate

A: The information being given to us is as follows:- Inflation = 1% Nominal interest rate = 3.1% We…

Q: In the market the real interest rate is 3% and nominal interest rate is 6.6%  Find inflation rate.

A: The data presented in the question is:- Real interest rate = 3%  Nominal interest rate = 6.6%…