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Let's define the followings:
r = real interest rate
i = nominal interest rate
I = inflation
What is the real interest rate if the nominal interest rate is 3% and inflation is 2%?
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- Given the following, construct a choice table for interest rates from 0% to 100%. Year X Y 0 −$10 −$20 1 15 28What would you expect the nominal rate of interest to be if the real rate is 4.2 percent and the expected inflation rate is 6.6 percent? Question content area bottom Part 1 The nominal rate of interest would be enter your response here%.Using Excel Formula to find interest rate "i" based on the following problem statement: n=PMT= Pv= Fv=|i=??? 0 -500 1 50 2 100 3 150 4 250 5 500 250
- (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 5.2 percent and the expected inflation rate is 2.5 percent? Question content area bottom Part 1 The nominal rate of interest would be enter your response here%. (Round to two decimal places.)Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = -26,000 + 8,000(P/A,i∗,5) + 8,000(P/F,i∗,8) What is the interest rate per period? %Given the anticipated rate of inflation (i) of 2.13% and the real rate of interest (R) of 3.1%, find the nominal rate of interest (r). Mathematical procedure needed
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- Interest rates or discount rates. Fill in the interest rates for the following table using one of the three methods below: a. Use the interest rate formula, r=FVPV1n−1. b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value Future Value Number of Periods Interest Rate $ 493.61 $ 1,902.61 20 ? $17,077.77 $228,416.84 32 ? $34,251.51 $ 63,755.61 24 ? $26,813.61 $212,279.67 10 ? Present Value Future Value Number of Periods Interest Rate $ 493.61 $ 1,902.61 20 nothing% (Round to two decimal places.) $17,077.77 $228,416.84 32 nothing% (Round to two decimal places.) $34,251.51 $ 63,755.61 24 nothing% (Round to two decimal places.) $26,813.61 $212,279.67 10 nothing% (Round to two decimal places.)If investors are to earn a 3.4% real interest rate, what nominal interest rate must they earn if the inflation rate is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Inflation Nominal Interest Rate a. Zero b. 4.4% c. 6.4% Rate % % %(Inflation and interest rates) What would you expect the nominal rate of interest to be if the real rate is 3.6 percent and the expected inflation rate is 6.8 percent?