Suppose that the only good you purchase is hamburgers, and that at the beginning of the year,

Question:

Suppose that the only good you purchase is hamburgers, and that at the beginning of the year, the price of a hamburger is $2.00. Suppose you lend $1,000 for one year at an interest rate of 5 percent. At the end of the year, a hamburger costs $2.08. What is the real rate of interest you earned on your loan?