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Główna zawartość

Nominal vs. real interest rates

Zadanie

The Iron Bank wants to make sure that the purchasing power of the interest that they get paid on loans is at least 11%. Real GDP is increasing at 5% per year, and the expected rate of inflation is 7% per year.
If all banks in Westeros want to earn the same real return as the Iron Bank, what is the nominal interest rate (n.i.r) in Westeros?
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