The student has 30000 rubles and decides to save them or spend. If he puts money in the bank, in a year he will get 33600 rubles. Inflation is 14% per year. a) What is the nominal interest rate? b) What is the real interest rate? c) What would you advise the student? d) How would your advice change if the inflation rate drops to 7%, at a constant rate of interest?

The idea that a regular annual inflation rate of 35 per cent requires CPP adjustments, but a regular annual inflation rate of 25 per cent does not, is quite absurd. Discuss.

Real interest rate is equal to Nominal Interest rate when inflation is 2% True/False

3. An economist has predicted that for the next 5 years, the U.S. will have a 2.5% annual inflation rate, followed by 5 years at a 3.5% inflation rate. This is equivalent to what average price change per year for the entire 10-year period?

Suppose you took out 20,000 in student loans at a fixed interest rate of 5%. Assume that after you graduate, inflation rises significantly as you are paying back your loans. Does this rise in inflation benefit you in paying back your student loans? Who is hurt more from unexpected higher inflation, a borrower or a lender ?

You currently have $300 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 4% pa which is the expected growth rate in the apple price. All rates are given as effective annual rates. Which of the below statements is NOT correct? All answer options are rounded to 6 decimal places. Question 1 Select one: a. In 3 years the nominal apple price will be $1.029124. b. The real growth rate in the apple price is expected to be 0% pa. c. In 3 years your money in the bank will be worth $347.287501 in nominal terms. d. In 3 years your money in the bank will be worth 308.737324 apples. e. The real bank interest rate is 0.961539% pa. Provide accurate answer as soon as possible.

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If the nominal rate on a loan is 7.0% and annual inflation is 3.0%, what is the real interest rate for that loan? 3.0% 4.0% 10.0% Not enough information.

Assume the economy is experiencing low and stable inflation, averaging 2% a year. Nadia loans her good friend Brett $12,000 to buy a car. Nadia and Brett agreed that he would repay the loan over the next 5 years at a 5% fixed interest rate. How would Nadia and Brett be affected if next year the inflation rate unexpectedly rises to 6%?

If Inflation is 2% and nominal interest rate is 4% Calculate real interest rate