If Treasury bills are currently paying 3.2 percent and the inflation rate is 2.8 percent, what is the approximate real rate of interest? The exact real rate?

Answers...

6.00 percent; 5.92 percent

0.40 percent; 3.98 percent

0.40 percent; 0.39 percent

6.00 percent; 5.67 percent

6.00 percent; 5.87 percent