Answer:
nominal rate of interest is 31.7 %
Step-by-step explanation:
given data
payment = $1000
time = 2 year
rate = 4%
CPI = 100
CPI final yer = 127.7
to find out
nominal rate of interest
solution
we know nominal rate of interest formula that is
nominal rate of interest = real interest rate + inflation rate .........1
so here inflation rate is express as
inflation rate = ( CPI final year - CPI ) / CPI × 100 ...........2
put here value
inflation rate = ( 127.7 - 100 ) / 100 × 100
inflation rate is 27.7 %
so from equation 1
nominal rate of interest = real interest rate + inflation rate
nominal rate of interest = 4% + 27.7%
nominal rate of interest is 31.7 %
Y intercept is where our x variable is equal to 0 and where the graph touches the y-axis.
Therefore, you can get the y intercept by just plugging in x = 0. For example, in the linear function: f(x) = 2x + 3, our y intercept would be (0,3) because we just set our x value equal to 0.
25% can be made in to 100% by multiplying it by 4.
Therefore, we can find the answer by multiplying 80 by 4.
80 * 4 = 320
