Answer:
5.8529%
Explanation:
The computation of the nominal interest rate is shown below:-
Nominal interest rate = (1 + Inflation premium) × (1 + Real rate of interest) - 1
= (1 + 1.45%) × (1 + 4.34%) - 1
= (1 + 0.0145) × (1 + 0.0434) - 1
= 1.0145 × 1.0434 - 1
= 1.058529 - 1
= 0.058529
or
= 5.8529%
Therefore for computing the nominal interest rate we simply applied the above formula so that the nominal interest rate could come
