Suppose at the beginning of 2011,I loaned out $100 and at the end of the year was paid back $108.The inflation rate during the year was 3 percent.
(A)What was the stated interest rate?
(B)What was the real interest rate?

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The Answer of Suppose at the beginning of 2011,I loaned out $100 and at the end of the year was paid back $108.The inflation rate during the year was 3 percent.
(A)What was the stated interest rate?
(B)What was the real interest rate?

Suppose at the Beginning of 2011,I Loaned Out $100 and at the End