1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vera_Pavlovna [14]
3 years ago
8

what is the rate of inflation if a savings account has a nominal interest rate of 3% and a real interest rate of 1%

Mathematics
1 answer:
IgorLugansk [536]3 years ago
7 0

Answer:

the rate of inflation is 2%.

Step-by-step explanation:

given:

Nominal interest rate =3%

Real interest rate=1%

To Find:

Rate of inflation=?

Solution:

Nominal interest rate:

Nominal interest rate refers to the interest rate before taking inflation into account.

Inflation rate:

The inflation rate is the percent increase or decrease in prices during a specified period. It's usually over a month or a year.

Real interest rate:

A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.

Real interest rate ≈ nominal interest rate − inflation rate.

This can be re written as

inflation rate= Real interest rate - nominal interest rate

Substituting the values,

inflation interest = 1+3

inflation interest=4%

i hope this helpsss<3

:)

if u didnt undersstand make sure to tell me so i can try to say it again

You might be interested in
I need help quickly!
emmainna [20.7K]

Answer:

not trying to be mean i have no idea  please do not get mad at me i am 9 years old i want points so i am trying to awnser but it is hard for me i am in 4th grade.

Step-by-step explanation:

5 0
2 years ago
Read 2 more answers
Write the expression 23/5 as a radical.
Andrej [43]
5/23 is the correct answer

8 0
3 years ago
Read 2 more answers
Which are steps that could be used to solve 0 = 9(x2 + 6x) – 18 by completing the square? Check all that apply.
jeyben [28]
18 + 81 = 9(x²<span> + 6x + 9)
</span><span>11 = (x + 3)</span>²

When we are completing the square, we are going to move the value of c across the equals.  We will do that by adding, and end up with

18=9(x²+6x)

We take the value of b (the coefficient of x), divide it by 2 and square it:
(6/2)²=3²=9

This is the value that completes the square.  However, since the entire square is multiplied by 9, this value must be multiplied by 9 before we can add it across the equals:
18+9(9) = 9(x²+6x+9)
18+81=9(x²+6x+9)
99=9(x²+6x+9)

Dividing both sides by 9, we have:
11=x²+6x+9

11=(x+3)²
8 0
3 years ago
Read 2 more answers
What is the area of the pentagon
vlada-n [284]
The area of the pentagon is 140
3 0
3 years ago
Read 2 more answers
A wheel in this scale drawing is 4 cm wide. The ratio of the drawing is 1:14. How wide is the actual wheel in cm?
bagirrra123 [75]

1:14 means that for every 1 cm it is drawn at it is actually 14 cm

 so multiply 4 x 14 = 56

 it is actually 56 cm wide

7 0
3 years ago
Other questions:
  • Vinyl wallpaper is needed to cover 4 walls of a room each wall measures 12 feet By 8 feet and each bolt of wallpaper covers 72 s
    7·1 answer
  • Which tool(s) are needed to construct a perpendicular bisector of a line segment?
    9·2 answers
  • Solve the exponential equation: 6x-3 = 216x-3
    9·2 answers
  • 0.74 Kcal/min to cal/secs
    13·1 answer
  • Please help! (Picture shown)
    5·1 answer
  • Helpp!!!!!!!!!!!!!!!!!....
    15·1 answer
  • PLEASE ANSWER I AM ON A TIMED TEST
    11·1 answer
  • A sample of bacteria is decaying according to the half-life model f(t) = Ne -0.226t, where N is the initial sample size and t
    8·1 answer
  • Plsase help meeeeeee​
    11·1 answer
  • A truck produces 22 pounds of carbon dioxide for every gallon of diesel fuel burned. The fuel economy of the truck is 18 miles p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!