Split Need help with laughing Word Problem

[Templegirl]

Word problems always laugh at me...someone please help me:

Question:
If Treasury bills are currently paying 5.7% and the inflation rate is 2.9%, what is the approximate real rate of interest? The exact rate? If the real rate is 3.2% and the inflation rate is 2.6%, what rate would you expect to see on a Treasury bill?

 

[Deleted member 4993]

Word problems always laugh at me...someone please help me:

Question:
If Treasury bills are currently paying 5.7% and the inflation rate is 2.9%, what is the approximate real rate of interest? The exact rate? If the real rate is 3.2% and the inflation rate is 2.6%, what rate would you expect to see on a Treasury bill?

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