What is the inflation free interest rate

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Reference no: EM131906800

1. The bank is paying 23.27% compounded annually. The inflation is expected to be 11.36% per year.

What is the inflation free interest rate?

Enter your answer as percentage, without the % sign. Provide 2 decimal places.

2. An economist has predicted 9.6% inflation during the next 14 years. How much will an item that presently sells for $16 bring 14 years later?

Enter your answer as follow: 123.45. Provide 2 decimal places.

3. Five years ago you invested $18749. What is the current value of that investment if you use a 5% market interest rate?

Reference no: EM131906800

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