Suppose at the beginning of 2017, 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 wras the stated interest rate?
(B) What was the real interest rate?

Question

Suppose at the beginning of 2017, 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 wras the stated interest rate?
(B) What was the real interest rate?

Quizplus · Accepted Answer

The Answer of Suppose at the beginning of 2017, 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 wras the stated interest rate?
(B) What was the real interest rate?

Suppose at the Beginning of 2017, I Loaned Out $100