Answer:
Nominal interest rate= 0.1 = 10%
Explanation:
Giving the following information:
The inflation rate over the past year was 2.4 percent.
An investment had a real return of 7.6 percent.
To calculate the nominal interest rate, we need to use the following formula:
Real interest rate= nominal interest rate - inflation rate
Nominal interest rate= real interest rate + inflation rate
Nominal interest rate= 0.076 + 0.024
Nominal interest rate= 0.1
