Here is the formulaI just doint know how they got the answer still (green indication is answer)

A bank will give a customer a 16 year loan. Inflation has been steady at 6.6% per year for the past 10 years. If they must receive 16.9% back on the loan compounded monthly, how much interest must the customer pa Selected Answer: Correct Answer: 0.16973616 26.08 3% Response Feedback: To calculate real interest rate we must first find the effective annual interest rate. Remember that loan payments are compounded monthly, but inflation is in yearly terms. 12 12 Using le we can calculate i e-f 1+f