Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.9% at a time when inflation is around 1.2?%.For the average saver, the real rate of interest on his or her savings is %.?(Round your response to two decimal places and use a minus sign if necessary?.) If banks expect that the rate of inflation in the coming year will be 4.2?% and they want a real return of 8.5?%on a certain category of? loans, then the nominal rate they should charge borrowers on those loans is ? (round response to two decimal places.)

1.  - 0.02%.

2. 12.7%

Explanation:

Suppose the average rate paid by banks on savings accounts is 0.9% at a time when inflation is around 1.2?%.

For the average saver, the real rate of interest on his or her savings is - 0.02%.

The real rate is derived from the nominal rate minus the inflation rate which is 0.9% - 1.2% = - 0.02%

If banks expect that the rate of inflation in the coming year will be 4.2% and they want a real return of 8.5%on a certain category of loans, then the nominal rate they should charge borrowers on those loans is 12.7%

As stated above, The real rate is derived from the nominal rate minus the inflation rate which in this case

Nominal Rate = Real rate + Inflation Rate. i.e. 8.5% + 4.2% = 12.7%

client registration system, resource management system, clinical management system, patient information database, common use-system interface

explanation:

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants