Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can someone help me solving these problems and differentiate between exact interest rate and approximate interest rate in finance economics? I would really apprecite it.?
Can someone help me solving these problems and differentiate between exact interest rate and approximate interest rate in finance economics? I would really apprecite it.? What is the formula ? Please don't give me a vague answer. Suppose I have to calculate Inflation interest rate by using exact interest rate formula , and approximate interest rate. I am given 4 percent real interest and 8 percent nominal rate. How would I calculate Inflation interest rate by using exact interest rate formula and approximate interest rate formula?
3. sing the exact and approximate formulae, what is the inflation rate when a. the real interest rate is 4 percent and the nominal interest rate is 8 percent? b. the real interest rate is 4 percent and the nominal interest rate is 4 percent? c. the real interest rate is -1 percent and the nominal interest rate is 8 percent? d. the real interest rate is 4 percent and the nominal interest rate is 40 percenStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started