If a lender desires to earn a real return of 3 percent on a loan and the anticipated rate of inflation is 2 percent,the lender should charge a
A)Real interest rate of 5 percent.
B)Nominal interest rate of 5 percent.
C)Real interest rate of 6 percent.

Question

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The Answer of If a lender desires to earn a real return of 3 percent on a loan and the anticipated rate of inflation is 2 percent,the lender should charge a
A)Real interest rate of 5 percent.
B)Nominal interest rate of 5 percent.
C)Real interest rate of 6 percent.

If a Lender Desires to Earn a Real Return of 3