Chloe has a $15,000 personal loan at a nominal interest rate of 8 per cent.If the inflation rate is 3 per cent,what is the real interest rate paid on the loan?
A) 5 per cent
B) 8 per cent
C) 11 per cent
D) 3 per cent
E) 2.67 per cent
Correct Answer:
Verified
Q61: If we look at real and nominal
Q62: You borrow at a nominal interest rate
Q64: The nominal wage rate is the
A) minimum
Q65: If the CPI is 170 at the
Q66: Westpac charges an 11 per cent interest
Q67: If the real interest rate is 5
Q122: If the bank returns $1,060 on $1,000
Q127: The CPI was 225 in 2014 and
Q128: Looking at real and nominal interest rates
Q130: The real interest rate is negative if
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents