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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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