Assume You Have a Credit Card Balance of $2,000 at 15

Multiple Choice

Assume you have a credit card balance of $2,000 at 15 percent and the inflation rate is 3 percent.What are the nominal and real interest rates?

A) 15 percent nominal and 3 percent real
B) 3 percent nominal and 12 percent real
C) 15 percent nominal and 12 percent real
D) 15 percent nominal and 18 percent real
E) 12 percent nominal and 15 percent real