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Doss [256]
3 years ago
13

Sally has a credit card balance of ​$10,000. The credit card company charges a nominal interest rate of 17 percent a year on unp

aid balances. The inflation rate is 9 percent a year. Calculate the real interest rate that Sally pays the credit card company. The real interest rate that Sally pays the credit card company is _______ percent a year.
Mathematics
1 answer:
Dima020 [189]3 years ago
5 0
To calculate the real interest rate we just need to remember the formula:
real interest rate=(nominal rate - inflation)/(1 + inflation)

Here:
i=\frac{.17-.09}{1+.09}
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