Martha lends Samuel 100$ this year and gets back 115$ next year. The yearly inflation rate in the economy is 5%. Which one of the following is correct? A) The nominal interest rate is 10% and the real...

Martha lends Samuel 100$ this year and gets back 115$ next year. The yearly inflation rate in the economy is 5%. Which one of the following is correct?

A) The nominal interest rate is 10% and the real interest rate is 5%

B) The nominal interest rate is 5% and the real interest rate is 10%