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Paha777 [63]
2 years ago
12

Who is Patrick Jorgenson? What does he do for a living?

Business
1 answer:
Reika [66]2 years ago
7 0

Answer:

I think you mean Patrick Jørgensen

Explanation:

He is a musical artist and if you don't mean Patrick Jørgensen I'm sorry

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The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.

To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.

Learn more about The interest rate here:-brainly.com/question/25793394

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