N A Real Interest Rate Of 5 And Expects The Inflation Rate To Be 3 Over The Peri

If a lender wishes to earn a real interest rate of 5% and expects the inflation rate to be 3% over the period of the loan, what nominal interest rate should the lender charge?

Question:If a lender wishes to earn a real interest rate of 5% and expects the inflation rate to be 3% over the period of the loan, what nominal interest rate should the lender charge?Solution:…

 

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