2.) What is the real interest rate given a nominal rate of 8.4% and an inflation rate of 4.7%?

3.) Elinore is asked to invest $ 4, 500 in a friend's business with the promise that the friend will repay $ 4, 950 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 4,860 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?