Neco Model Questions Vol1 2018 Economics Question 21
Practice objective / multiple choice question 21 from the 2018 Neco Model Questions Vol1 Economics examination.
The Consumer Price Index (CPI) was 120 at the start of 2020, rose to 126 at the end of 2020 and to 133.2 at the end of 2021. A loan taken at the start of 2021 carries a nominal interest rate of \(12\%\) per annum. Calculate the real interest rate (to two decimal places) that the borrower effectively pays over 2021.
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About This Question
This is Neco Model Questions Vol1 2018 Economics Question 21. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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