Question

Suppose that the one-year real interest rate in period 0 is 12% and that the inflation rate is 4.5%. So the nominal interest rate is?

234

likes

1170 views

Answer to a math question Suppose that the one-year real interest rate in period 0 is 12% and that the inflation rate is 4.5%. So the nominal interest rate is?

$Expert avatar$

Seamus

4.9

98 Answers

1 + i = (1 + 0.12)(1 + 0.045)

1 + i = 1.12 \cdot 1.045

1 + i = 1.1694

i = 1.1694 - 1

i = 0.1694

i \approx 0.1704 \quad \text{or} \quad 17.04\%

The nominal interest rate, given a real interest rate of 12% and an inflation rate of 4.5%, is approximately 17.04%.

Frequently asked questions (FAQs)

What is the area of a triangle with a base of 6 units and a height of 9 units?

What is the resultant vector when vector A, with magnitude 3 units, is added to vector B, with magnitude 5 units, and then vector C, with magnitude 2 units, is subtracted from the sum?

What is the length of an unknown side in a triangle with an angle of 45°, a side length of 5, and an opposite angle of 30°?

New questions in Mathematics

1 + 1

a runner wants to build endurance by running 9 mph for 20 min. How far will the runner travel in that time period?

5) A family with a father, mother and 3 children must sit on five chairs in a row and the only restriction is that the mother must be at one end. In how many different ways can they be seated?

(-5/6)-(-5/4)

is the x element (180,270), if tanx-3cotx=2, sinx ?

(5y 9)-(y 7)

According to a survey in a country 27% of adults do not own a credit card suppose a simple random sample of 800 adults is obtained . Describe the sampling distribution of P hat , the sample proportion of adults who do not own a credit card

What is 28 marks out of 56 as a percentage

Prove that it is not possible to arrange the integers 1 to 240 in a table with 15 rows and 16 columns in such a way that the sum of the numbers in each of the columns is the same.

Three squares have a total area of 35.25 𝑐𝑚2 . The larger square has twice the side-length of the middle-sized square. The smaller square has its side length exactly 0.5 cm smaller than the middle-sixed square. Find the side lengths of each of the three squares.

In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24

From 1975 through 2020 the mean annual gain of the Dow Jones Industrial Average was 652. A random sample of 34 years is selected from this population. What is the probability that the mean gain for the sample was between 400 and 800? Assume the standard deviation is 1539

Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?

cube root of 56

Which statement best describes the key changes in perspectives on inclusion? An inclusive program must consider the unique experiences of every child and family as well as the child's strengths and needs. There is a shift in thinking about individual programs as "inclusive programs" to thinking about inclusion as something that reflects the cultural influence of the family. There is a greater emphasis on barriers to full participation and the acknowledgement that all children are unique and must be fully and meaningfully engaged in a program. In an inclusive program all participants are accepted by their peers and other members of the community.

Associate each 2nd degree equation with its respective roots. A) x2+6x+8=0 B)x2-5x-6=0

You buy a $475,000 house and put 15% down. If you take a 20 year amortization and the rate is 2.34%, what would the monthly payment be?

A nondegenerate ideal gas of diatomic molecules with a kilomolar mass of 2 kg/kmol and a characteristic rotational temperature of 86 K is adsorbed on the walls of a container, where the binding energy is 0.02 eV. The adsorbed molecules move freely on the walls, and their rotation is confined to the plane of the walls. Calculate the surface density of adsorbed molecules at 12 K if the gas pressure is 103 Pa! What result would you get at 68 K and the same pressure?

4m - 3t + 7 = 16

Sin(5pi/3)

Suppose that the one-year real interest rate in period 0 is 12% and that the inflation rate is 4.5%. So the nominal interest rate is?

Answer to a math question Suppose that the one-year real interest rate in period 0 is 12% and that the inflation rate is 4.5%. So the nominal interest rate is?

You might be interested in