Question 1179979


we know that:
a stated interest rate of {{{2.5}}}%
the real return on her savings account is {{{1}}}%.

The stated interest rate  is a percentage which is calculated per year and refers to the return on the investment made.
The nominal interest rate is the rate received by the depositor before taking into account the inflation rate.

therefore:
The {{{nominal }}}interest rate is {{{equal}}} to the {{{stated }}}interest rate and does not include the inflation rate.

Since the {{{stated }}}rate in this problem is {{{2.5}}}%, the {{{nominal}}} rate of interest for this savings account is also {{{2.5}}}%