Question: Given the information below, estimate the nominal rate with the approximation nominal interest rate equation and the true nominal interest rate equation. True Nominal Approximate

Given the information below, estimate the nominal rate with the approximation nominal interest rate equation and the true nominal interest rate equation.

True Nominal Approximate Rate Real Rate Inflation Rate Nominal Rate 3% 5% 8% 15% 1% 4% 2.5% 3.5%

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