If you lend money at a 9% nominal interest rate, but you expect inflation to be 6% over the life of the loan, then you expect your purchasing power to grow at a rate

Our purchasing power is expected to grow at a rate of 2.83%

Explanation:

In this question we need to find at what rate is our purchasing power is growing at or in other words at what is the real interest rate. The formula for real interest rate is

1+Real interest rate = (1+Nominal interest rate)/(1+Inflation rate)

1+Real interest rate = (1.09)/(1.06)= 1.028

Real interest rate = 1.028-1

Real interest rate = 0.028 or 2.83%

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"