The nominal rate is 9%
calculating:
nominal rate = real rate of interest + inflation rate
given: rate of interest = 6%
inflation rate= 3%
putting the values-
nominal rate= 6% + 3%
= 9%
hence the nominal rate is 9%
What is nominal rate of interest with example?
The nominal rate of interest is often used in banks to describe interest on different loans and in the investment field. for instance , if the nominal rate on a loan is 5%, you'll expect to pay $50 of interest for $1,000 borrowed. At the year's end, you'll pay $1,050.
What is real and nominal rate?
A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal rate of interest refers to the interest rate before taking inflation into account
Learn more about nominal rate:
brainly.com/question/25816355
#SPJ4
