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(Solved): Suppose a bank wants to earn a real rate of interest equal to 7.99% and they expect the rate of infl ...



Suppose a bank wants to earn a real rate of interest equal to 7.99% and they expect the rate of inflation to be 3.11%. At what interest rate will they set this loan to be? Answer this as a percentage and round your answer to two digits after the decimal without the percentage. ex. If you found the inflation rate to be 5.125%, answer 5.13.



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