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Can you teach me how to solve please include your procedure. Thank you :) 1. Nancy agreed to lend $5 to Sue at an expected

Can you teach me how to solve please include your procedure. Thank you :)

1. Nancy agreed to lend $5 to Sue at an expected real interest rate of 5% over the following 1 year. They had expected an inflation rate of 8%, but actual inflation was 7%. On what fixed nominal interest rate did the two agree? (express your answers in percentage points. Round to 1 decimal place)

2. Nancy agreed to lend $6 to Sue at a nominal interest rate of 2% over the following 1 year. Sue had expected an real rate of 5%, but the actual real return was 7%. What was the expected inflation rate? (express your answers in percentage points. Round to 1 decimal place)

3. Nancy agreed to lend $3 to Sue at a nominal interest rate of 6% over the following 1 year. Sue had expected an real rate of 6%, but the actual real return was 8%. What was the actual inflation rate? (express your answers in percentage points. Round to 1 decimal place)

4. Nancy agreed to lend $6.1 to Sue at a nominal interest rate of 8% over the following 1 year. They had expected an inflation rate of 7.9%, but actual inflation was 5.1%. What real interest rate was expected? (express your answers in percentage points. Round to 1 decimal place)

5.

Year Salary CPI
2000 26 35
2018 26 32

See the above CPI values and salary values. Salary is expressed in contemporary dollars. What was the salary in 2000 expressed in 2018 dollars (round to the nearest cent)?

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