Question: Correct Answer Hodor borrowed borrowed $ 1 0 0 0 in 2 0 2 0 at a nominal interest rate of 1 2 . 4

Correct Answer
Hodor borrowed borrowed $1000 in 2020 at a nominal interest rate of 12.4%. Assume Hodor pays simple interest compounded annually.
The GDP deflator in 2020 was 162 and the GDP deflator in 2021 was 168.
What was Hodor's real rate of interest?
Round your answer to the nearest 100th of a percent (two decimal places).
Correct Answer Hodor borrowed borrowed $ 1 0 0 0

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