Question $3$

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The expected inflation rate is $5\mathrm{.}3\%$ per annum. If Loans$-4-$U Ltd offers you a loan at a nominal interest rate of $16\mathrm{.}7\%$ per annum, what is the real interest rate on the loan? $($Please use the actual real interest rate formula and then enter your answer in decimals and show your answer to the nearest $10$ th of a percent, i$.$e$.10\mathrm{.}1\%$ would be shown as $0\mathrm{.}101$

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