Nominal interest, real interest, and inflation calculations
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Nominal interest, real interest, and inflation calculations
While the nominal interest rate is the agreed upon percentage that someone will pay back on a loan, the real interest rate accounts for inflation and gives a more accurate representation of the actual value of the loan over time.
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SOLVED: Consider the given nominal rate (Round your answers to two decimal places:)% compounded dailyFind the annual yield corresponding to the given nominal rate(b) Interpret the annual yield corresponding to the given nominal rate. The given compound rate is equivalent to % simple interest.
SOLVED: Consider the given nominal rate (Round your answers to two decimal places:)% compounded dailyFind the annual yield corresponding to the given nominal rate(b) Interpret the annual yield corresponding to the given nominal rate. The given compound rate is equivalent to % simple interest.
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what would you expect the nominal rate of interest to be if the real rate is 42 percent and the expected inflation rate is 75 percentthe nominal rate of interest would be nothing round to tw 26702
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