Question: Assuming that both the real rate (r) and expected rate of inflation (e) are significant, and accordingly, should be considered, calculate the nominal rate of

Assuming that both the real rate (r) and expected rate of inflation (e) are significant, and accordingly, should be considered, calculate the nominal rate of return (i) that an investor would need to realize in order to make a 4% real return (r) in an economy with an inflation rate (e) of 11%. (Hint: use decimal values and the "precise formulation of the Fisher equation" in arriving at your solution.)

(State your solution in percentage form rounded to the nearest one-hundredth of one percent: X.XX%.)

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