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 value of a if the square root of a is equal to 4?

Math Question: Using the Extreme Value Theorem, find the absolute maximum and minimum values of the function f(x) = 2x^3 - 3x^2 - 12x + 2 over the closed interval [-1, 3].

Math question: Find the derivative of f(x) = 3x^2 - 4x + 5.

New questions in Mathematics

Simplify the expression sin³(x)+cos³(x), using trigonometric functions

A college believes that 22% of applicants to that school have parents who have remarried. How large a sample is needed to estimate the true proportion of students who have parents who have remarried to within 5 percentage points?

-6(3x-4)=-6

String x = 5 Int y=2 System.out.println(x+y)

-11+29-18

A juice shop prepares assorted juices, for their juices they have 5 different types of fruit. How many types of assortments can be prepared in total, if it is considered an assortment to a juice made with two or more fruits?

A pair of die is thrown and the absolute difference of the two scores is recorded. What is the probability of the absolute difference being 4 or more?

∫ √9x + 1 dx

You mix a powder drug with a 4.5ml of liquid to get a reconstituted solution with a concentration of 250mg/ml. The prescribers order is for 500 mg . You will give what ml of the reconstituted solution

Find all real numbers x that satisfy the equation \sqrt{x^2-2}=\sqrt{3-x}

Two business partners have a bank balance of $17,942.00. After the first year their interest brings their balance to $18,928.91. What rate of interest is earned?

9 x² + 2x + 1 = 0

(a) List the set of possible rational zeros of the polynomial function F(x) = 2x3 - 11x2 + 13x - 4. (b) Find all rational zeros of F(x). Only do part B

5x+13+7x-10=99

Write the detailed definition of a supply chain/logistics related maximization problem with 8 variables and 6 constraints. Each constraint should have at least 6 variables. Each constraint should have At least 5 variables will have a value greater than zero in the resulting solution. Variables may have decimal values. Type of equations is less than equal. Numbers and types of variables and constraints are important and strict. Model the problem and verify that is feasible, bounded and have at least 5 variables are nonzero.

Calculate the area of the parallelogram with adjacent vertices (1,4, −2), (−3,1,6) 𝑦 (1, −2,3)

a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?

Sally’s sales for last Sunday were $1,278. That was an increase of 6.5% over her sales for the previous Saturday. What were her sales for the previous Saturday?

Two trains leave stations 294 miles apart at the same time and travel toward each other. One train travels at 95 miles per hour while the other travels at 115 miles per hourHow long will it take for the two trains to meet?

To apply a diagnostic test, in how many ways can 14 students be chosen out of 25? if the order does not matter

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