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If the rate of inflation is 5.14%, what nominal interest rate is necessary for you to earn a 2.37% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate needed for your investment is %. (Round to two decimal places.)

If the rate of inflation is 5.14%, what nominal interest rate is necessary for you to earn a 2.37% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate needed for your investment is %. (Round to two decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If the rate of inflation is 5.14%, what nominal interest rate is necessary for you to earn a 2.37% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate needed for your investment is %. (Round to two decimal places.)
Transcribed Image Text:If the rate of inflation is 5.14%, what nominal interest rate is necessary for you to earn a 2.37% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate needed for your investment is %. (Round to two decimal places.)
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