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Karolina [17]
3 years ago
15

A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real

Business
1 answer:
dmitriy555 [2]3 years ago
6 0

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

Fixed nominal interest rate = 13%

Real interest rate for the bank's profit margin = 10%

Inflation rate = 3% (13% - 10%)

Unanticipated inflation rate = 7%

Nominal interest rate = 17% (10% + 7%)

But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.

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