If Treasury bills are currently paying 6.3 percent and the inflation rate is 1.7 percent, what is the approximate and the exact real rate of interest?

Given Information:  

Nominal Interest Rate = 6.3 %

Inflation Rate = 1.7 %

Required Information:  

approximate real rate of interest?

exact real rate of interest?

approximate real rate of interest = 4.6%

exact real rate of interest = 4.5%

Explanation:

Nominal Interest Rate: The interest rate that a person earn or pay on a loan.

Real Interest Rate: The nominal interest rate after adjusting for inflation.

Relation between Nominal and Real Interest Rate: The fisher equation

Real Interest Rate = Nominal Interest Rate - Inflation Rate

approximate real rate of interest = 6.3% - 1.7% = 4.6%

exact real rate of interest = (1 + 0.063)/(1 + 0.017) = 1.045 = 4.5%

industry had made the u.s. the richest nation in the world at this time. the second industrial revolution caused growth in industry and transportation, which allowed increased trade between nations. click to let others know, how is it

intimacy, passion and commitment are the components of a interpersonal relationship emphasized in the triangular theory of love by robert sternberg.

the triangular theory of love says love can be comprehend as this componest form the vertices of a triangle.  

intimacy relates to feelings such as of closeness and connection;

passion relates the drives that brings people together, as physical attraction.

commitment relates to the being in a long-term relationship.