Answer
d. 5, 3
Work Step by Step
The nominal interest rate measures the change in dollar amounts. The change from \$2000 to \$2100 can be represented by $(2100-2000)/2000 = 0.05$ or $5\%$.
The real interest rate accounts for inflation. The CPI's increase from 200 to 204 represents 2% inflation. The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate, or $5\% - 2\% = 3\%$.
