Gce Model Questions Vol1 2023 Economics Question 49
Practice objective / multiple choice question 49 from the 2023 Gce Model Questions Vol1 Economics examination.
A loan carries a nominal interest rate of \(12\%\) per annum, compounded annually. Expected inflation is \(8\%\) per annum each year. Assuming the rates apply for two consecutive years, calculate the effective real interest rate over the two‑year period, expressed as a percentage to two decimal places.
Answer Options
About This Question
This is Gce Model Questions Vol1 2023 Economics Question 49. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.