Bella C.

asked • 04/28/22

Tywin knows he has a debt to repay soon.

The bank charges him an interest rate of 6%, percent. If the expected rate of inflation is 5%, percent, how much interest is he effectively paying? Explain.


1 Expert Answer

By:

Travis K. answered • 05/17/22

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To find real interest rates:


Real interest rate = nominal interest rate - expected inflation

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