P5-18 (similar to) Question Help Inflation, nominal interest rates, and real rates. The Republic of New South Brazilia, a small developing Island country in South Central America, is experiencing a very high inflation rate at this time. The annual inflation rate is 35%. If the real rate of interestis 1.5%, what nominal interest rates must the residents of New South Brazilia get to stay ahead of inflation and still have a reward for waiting? Use the approximate nominal interest rate equation and the true nominal interest rate equation to determine the rates Using the approximate nominal interest rate equation, what nominal interest rate must the residents of New South Brazilia get to stay ahead of inflation and have a reward for waiting? 36.5 % (Round to two decimal places.) Using the true nominal interest rate equation, what nominal interest rate must the residents of New South Brazilia get to stay ahead of nation and still have a reward for waiting? > (Round to two decimal places)