Ask Question
4 September, 23:55

If the real interest rate is 3.00% per year and the expected inflation rate is 2.40%, what is the nominal interest rate according to the Fisher equation

+1
Answers (1)
  1. 5 September, 03:09
    0
    5.47%

    Explanation:

    Fisher equation:

    1 + real interest rate = (1+nominal interest rate) / (1+Inflation rate)

    1+0.03 = (1 + Nominal interest rate) / (1+0.024)

    --> nominal interest rate = 5.47%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the real interest rate is 3.00% per year and the expected inflation rate is 2.40%, what is the nominal interest rate according to the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers