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
If the retail price of an item is 70$ and its markuped by35%, what is its wholesale price?
sveta [45]

Answer:

94.50$

Step-by-step explanation:

4 0
3 years ago
Can someone please help me with this? I don’t understand what is given.
a_sh-v [17]

\bf BC=2BA\\ BE = 2BD \end{cases} \cfrac{BC}{BE}=\cfrac{~~\begin{matrix} 2 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}~~BA}{~~\begin{matrix} 2 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}~~BD}\implies \cfrac{BC}{BE}=\cfrac{BA}{BD}\impliedby \begin{array}{llll} \textit{equal ratio of sides}\\ \textit{similar triangles} \end{array}

8 0
3 years ago
Help! how do i answer this
navik [9.2K]
Idk but ima try to figure it out ok
7 0
3 years ago
If you multiply my number by 6 and add the product to -4, the result is -40. What's my number?
Nikolay [14]

Answer:

I can totally help you but, what is your number by chance?

Step-by-step explanation:

6 0
3 years ago
Read 2 more answers
I need help with this Algebra question
Ainat [17]

Step 1 = Distributive Property ( multiplying the 2 by each term in parenthesis)

Step 2 = Addition Property ( adding like terms)

Step 3 = Addition Property (adding 34x to each side)

Step 4 = Division Property. ( dividing both sides by 17)


3 0
3 years ago
Other questions:
  • I don't need help doing work I just need someone to check my answers for me.
    14·2 answers
  • 4m-2+3m+5 terms, like terms, coefficient, and constant
    11·1 answer
  • If two negative integers are multiplied together the product will be-
    13·2 answers
  • I need this question for algebra 1 please!
    6·1 answer
  • Find the area of the figure below <br><br> (URGENT//GIVING BRAINLIEST)
    15·1 answer
  • HELP “The vertical supports in this truss bridge are built so that
    13·1 answer
  • Which shows two products that both result in positive values?
    6·1 answer
  • (2x + 7y) (4x – 8y)
    5·1 answer
  • Linear equations need help ASAP lots of points, will mark brainliest
    12·1 answer
  • Find the surface area of this triangular prism. Be sure to include the correct unit in your answer.
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!