Assume thefollowing:

i. The public holds no currency.

ii. The ratio of reserves to deposits () is 0.08.

iii. The demand for money is given by Md=$Y(0.883.6i).

Initially, the monetary base (H) is $74 billion, and nominal income ($Y) is $5,300 billion.

Calculate the demand function for central bankmoney:

Hd=(0.08) 5,300 (0.88 - 3.6 i)

Find the equilibrium interest rate by setting the demand for central bank money (Hd) equal to the supply of central bank money (H).

The equilibrium interest rate is _______(Round your response to two decimal places.)