Hodor borrowed \[\$1000\]. The bank charges him \[5\%\] interest per year. At the end of one year, he paid \[\$50\] in interest. During that year, there was a \[2\%\] increase in the GDP deflator. What was the nominal interest rate? Choose 1 answer: Choose 1 answer: (Choice A) This cannot be determined without more information A This cannot be determined without more information (Choice B) \[5\%\] B \[5\%\] (Choice C) \[3\%\] C \[3\%\] (Choice D) \[7\%\] D \[7\%\] (Choice E) \[2\%\] E \[2\%\]