Question: 3. Compute the real interest rate using the exact formula and the approximation formula for each set of assumptions listed in (a) through (c). a.

3. Compute the real interest rate using the exact formula and the approximation formula for each set of assumptions listed in

(a) through (c).

a. i = 4%; pe = 2%

b. i = 15%; pe = 11%

c. i = 54%; pe = 46%

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