What is the approximate real rate of interest

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1. If Treasury bills are currently paying 2.74 percent and the inflation rate is 1.43 percent, what is the approximate real rate of interest?

A. 1.21 percent

B. 1.31 percent

C. 2.20 percent

D. 2.29 percent

E. 2.38 percent

2. If your nominal of return is 14.48 percent and your real rate of return is 4.95 percent, what is the exact inflation rate?

A. 8.47 percent

B. 8.96 percent

C. 9.08 percent

D. 19.35 percent

E. 19.92 percent

Reference no: EM131523236


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