It will not let me see the answers so this is garbo sorry for the rude comment it is just that this will not show me the answer.
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In economics, the Fisher equation is used to determine the relationship of the nominal interest rate and the real interest rate. This equation takes into account the effect of inflation. Mathematically this is expressed as:
Real rate = -1
The values given are:
Nominal rate= 10% = 0.1
Inflation=5%=0.05
Substituting known values and by calculation:
<span>Real rate=0.0476 = 4.76%</span>