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    Principles of Corporate Finance Study Set 3
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
  5. Question
    If the Nominal Interest Rate Is 7
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If the Nominal Interest Rate Is 7

Question 2

Question 2

Multiple Choice

If the nominal interest rate is 7.5 percent and the inflation rate is 4.0 percent, what is the real interest rate?


A) 4.0 percent
B) 9.5 percent
C) 3.4 percent
D) 11.5 percent

Correct Answer:

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