Suppose you were borrowing money to buy a car. Consider the following situations. Situationâ 1: Suppose the interest rate on your car loan is percent and the inflation rate is percent.

Required:
Calculate the real interest rate.

1%

Explanation:

The real interest rate is the nominal interest rate adjusted for inflation so that a person might know how much of the interest is not eroded by inflation.

Real Interest rate = Nominal Interest rate - inflation

= 18% - 17%

= 1%

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?

answer; /// the use of a bank credit card to make purchase;