The Republic of New South Brazillia, a small developing island country in South Central America, is experiencing a very high inflation rate at this time.

The annual inflation rate is 31%. If the real rate of interest is 1.8%, what nominal interest rates must the residents of New South Brazillia 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.