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3 years ago

If the nominal interest rate is 4.7% and the inflation rate is 3.4%, what is the real interest rate?

Business

1 answer:

jeyben [28]3 years ago

3 0

Answer:

1.3%

Explanation:

The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.

real interest rate=nominal interest rate-inflation rate

nominal interest rate=4.7%

inflation rate= 3.4%

real interest rate=4.7%-3.4%

real interest rate=1.3%

According to this, the answer is that the real interest rate is 1.3%.

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Answer:

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