What would you expect the nominal rate of interest to be if the real rate is 4.3% and the expected inflation rate is 6.8%?

What would you expect a nominal rate of interest to be if the real rate is 3.9% and the expected inflation rate is 7.4%?

9) A project costs $3000 immediately. The project yields nominalreturns of $100 in year 1, $200 in year 2, $300 in year 3, $400 inyear 4, and $500 in year 5. In addition, the project will havecapital worth $2500 (in nominal $) left over in year 5. The realdiscount rate is 7% and the expected inflation rate is 3%. What isthe NPV of this project? 10)You have $2000 to invest, and arechoosing between two projects, both of which cost $2000 up frontand will yield six years of returns. The returns for the firstinvestment will be paid in nominal $, starting at $400 a year fromnow and increasing at 8% annually. The returns for the second willbe paid in real $, starting at $500 and increasing at 2% annually.If your real hurdle rate is 4.5% and the expected inflation rate is3.1%, which of these investments should you choose (if any)?

Interest rates that include an inflation premium are referred to as:

A. annual percentage rates.

B. stripped rates.

C. effective annual rates.

D. real rates.

E. nominal rates.