My Math Forum nominal rate of interest help

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 January 20th, 2014, 08:04 PM #1 Member   Joined: Sep 2009 Posts: 43 Thanks: 0 nominal rate of interest help What would you expect the nominal rate of interest be if the real rate is 4% and the expected inflation rate is 7%? I did n=4 I=7 (1+.04)= (1+.07)+(1+r) 1.04/1.07 - 1 = -2.80. Is that correct?
 January 21st, 2014, 07:46 AM #2 Global Moderator     Joined: Nov 2006 From: UTC -5 Posts: 16,046 Thanks: 938 Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms Re: nominal rate of interest help Looks good to me.

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