.12=r+.04+r(.04)

.12 is the nominal interest rate

.04 is the inflation rate

r being the real rate of interest
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1 Answer

???????????? wot cha meen "reel" ???????????

effektiv rate after flate rate=%interest -flate rate -taxrate1-taxrate2-taxrate3-taxrate4

x +0.04x +0.4=0.12

1.04x=0.12-0.4

x=0.08/1.04

=0.076923076
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