IDNLearn.com: Your trusted source for accurate and reliable answers. Find in-depth and accurate answers to all your questions from our knowledgeable and dedicated community members.
Answer:
3%
Explanation:
Calculation to determine what the Annual real interest rate is
Using this formula
Annual real interest rate = Annual nominal interest rate - expected annual inflation rate
Let plug in the formula
Annual real interest rate=8%-5%
Annual real interest rate=3%
Therefore Annual real interest rate is 3%