The nominal interest rate is 9%.
Interest rate is the rate earned on deposits or the rate charged on loans. Interest rate could be real interest rate or nominal interest rate. Nominal interest rate is real interest rate plus inflation rate. Real interest rate is interest rate that has been adjusted for inflation. Inflation rate is the rate at which the general price levels in the economy is increasing.
Nominal interest rate = real interest rate + nominal interest rate
2% + 7% = 9%
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