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torisob [31]
3 years ago
9

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____

.?
Business
1 answer:
goldenfox [79]3 years ago
7 0

The real interest rate is simply nominal interest rate less the inflation rate. In equation form this is equivalent to:

Real interest rate = Nominal rate – Inflation Rate

Real interest rate = 9% - 4%

Real interest rate = 5%

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Double declining depreciation expense = [2 x (1/useful life of the asset)] x cost of the asset

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