(Appendix 12A) The real rate of interest is 15%, and inflation is estimated at 5%. What is the nominal rate of interest?

Name: (Appendix 12A) The real rate of interest is 15%, and inflation is estimated at 5%. What is the nominal rate of interest?
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The nominal rate of interest can be calculated using the Fisher equation: nominal rate = real rate + inflation rate + (real rate * inflation rate). Here, it is 15% + 5% + (15% * 5%) = 20.75%.

(Appendix 12A) the Real Rate of Interest Is 15%, and Inflation