Priya borrows money to pay for repairs to her home. The table shows what happens during the following year.
| Annual rate | |
|---|---|
| Interest charged on Priya's borrowing | 7.9% |
| Rise in the general price level | 3.2% |
Calculate the approximate real interest rate paid by Priya. Show your working.
62 exam-style questions on OCR GCSE Economics 3.4 Price stability, covering 3.4.1 Price stability and inflation, 3.4.2 Measuring inflation with CPI, 3.4.3 Calculate the effect of inflation, 3.4.4 Analyse inflation figures, and 3.4.5 Causes and consequences of inflation. Each one has a worked solution and a mark scheme showing where the marks go.