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You deposit $800 in a savings account and one year later you have $864. At the same time, the CPI increases from 120 to 126. The nominal interest rate is % and the real interest rate is %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You deposit $800 in a savings account and one year later you have $864. At the same time, the CPI
increases from 120 to 126. The nominal interest rate is
% and the real interest
rate is
%.
Enter whole numbers.

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