Answer:
Real rate interest = 2.675
Explanation:
given data
nominal rate of interest = 4.35 % = 0.0435
rate of inflation = 1.63 % = 0.0163
to find out
what is the real rate of interest
solution
we get here real rate of interest that is express as
Real rate interest = (1 + nominal rate) ÷ (1 + inflation rate) - 1 ...................1
put here value we get
Real rate interest =
- 1
Real rate interest = 1.026763751 - 1
Real rate interest = 0.026763751
Real rate interest = 2.675
The main problem will arise when it has to be with converting the public good to numbers where it can be interpreted and studied. The number of people can also be something difficult to deal with because it deppends on the distance of the people seeing the fireworks show and if the distance is ok for the number of people looking at the fireworks
That’s very long sorry I don’t know the answer