Amy is willing to lend her friend John $500 to buy a new smart phone. Amy wants a 3% real rate of return on the loan when it is paid back at the end of the year. She believes that during the year the general level of prices will rise by 2%, so she should charge her friend John a nominal interest rate of ____. [Recall that the real interest rate = the nominal interest rate - inflation]

Answer: 5%

Can this be figured out on regular calculator?