An investor is checking the real interest rate for every investment. How much is the expected profit of an investor who invested his 10,000,000.00 PhP if the nominal interest rate is 15% and the current inflation is at 6.5 %. It was predicted that the quarter will have a bearish market and inflation is set to increase by 1.2 %.



 2. Jabez bought a car for 500,000 Php. He took 300,000 Php loan from a bank at an interest rate of 15% per year for a 3-year period. What is the total amount of( interest and loan) that he would have to pay the bank at the end of 3 years.

Answer rating: 100% (QA)

1 To calculate the real interest rate we need to subtract the inflation rate from the nominal intere... View the full answer