Given the following data, calculate the approximate real interest rate for years 2, 3, and 4. (Assume that each CPI number tells us the price level at the end of each year.)

If you lent $200 to a friend at the beginning of year 2 at the prevailing nominal interest rate of 15 percent, and your friend returned the money, with the interest, at the end of year 2, did you benefit from the deal?

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End of Nominal Real Interest Year CPI Interest Rate Rate 100 110 15% 120 13% 4 115 8% 2.