Question
In 1975, interest rates were 7.85% and the rate of inflation was 12.30% in the United States. What was the real interest rate in 1975?
In 1975, interest rates were 7.85% and the rate of inflation was 12.30% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year?
What was the real interest rate in 1975?
The real rate of interest is __% (Round to two decimal places.)
Step 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
Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
