If the Bank Offers You a Nominal Interest Rate of 9

question 90

Multiple Choice

If the bank offers you a nominal interest rate of 9 percent on a student loan, and if inflation is 6 percent, then what is the real interest rate?

• A) 15 percent.
• B) 9 percent.
• C) 6 percent.
• D) 3 percent.

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Definitions:

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Confidence Interval

A variety of values, sourced from sample statistics, with a high likelihood of containing an undetermined population parameter's value.

Sample Size

The number of observations or elements selected from a population to be analyzed.

Population Mean

The average of a set of values in an entire population, representing the central tendency of the population.