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3 years ago

7

If the inflation rate was 3.00% and the nominal interest rate was 8.00% over the last year, what was the real rate of interest o

ver the last year?

1 answer:

Alex Ar [27]3 years ago

3 0

The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%

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Answer:

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Explanation:

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Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.

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<h3>What is future value?</h3>

The future value of an amount is the value obtained in the future after compounding at an interest rate.

The future values after years 9 and 23 can be determined using an online finance calculator as follows:

<h3>Future Value of $2,100 after 9 years:</h3>

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Thus, the future value of the account established by the wealthy uncle will be $3,943.86 after 23 years at the two interest rates.

Learn more about future values at brainly.com/question/24703884

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