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    Finance : Interest and the Fisher Effect

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    What is the nominal interest rate (i) in Canada if the real estate of return is 2.5% and the expected rate was 4.5%.

    (The Fisher Effect formula should be used in this problem).

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    Solution Preview

    I assume "real estate of return is 2.5%" means (real interest rate)
    "expected rate ...

    Solution Summary

    Finance : Interest and the Fisher Effect are investigated. The solution is detailed and well presented. The response received a rating of "5" from the student who posted the question.