Frank is going to lend Sarah $1000 for 1 year. Frank and Sarah agree that Frank should earn a 2% real rate of interest on the loan. The CPI index is 100 at the time Frank makes the loan and is expected to be 110 in one year. What nominal rate of interest should Frank charge Sarah?Group of answer choices14%12%10%8%

Laura wants to get 8% in real return of her certificate of deposit. If the annual inflation rate is estimated at 2%, how much should her nominal interest be? (If your answer is 89%, please write 89)

Juan wants to earn a real annual interest rate on his investment of at least 4%. If the annual rate of inflation is 4%, what is the minimum nominal rate of interest Joao would be willing to accept on his investment?(Write your answer in percentage. If your answer is 0.3, then write 30, do not add %)

A certificate of deposit offers a nominal interest rate of 3.5 percent annually. If inflation is 1.5 percent, what is the real rate of return?A.2.5 percentB.2 percentC.1.75 percentD.1 percentSUBMITarrow_backPREVIOUS

If the average price of goods rose by 10 percent in a year and John received a 12 percent interest rate in his savings account, what was the nominal interest rate John earned?

On January 1, 2011, Maria invested $1,000 at 6 percent interest per year for three years (with yearly capitalization). The CPI stood at 100 in January 1, 2011. At year later it climbed to 105 and on January 1, 2013 was 110, and on January 1, 2014, the day Marias investment matured, the CPI was at 120. Find the real interest rate that Maria's total real return over the 3-year period. (Write your answer without the %. If your answer is XX.yy%, write XX.y, only two decimal points.)