Final answer:
To earn a real interest rate of 2.8% with an inflation rate of 4.8%, an investor would need a nominal interest rate of 7.6%.
Step-by-step explanation:
To calculate the nominal interest rate necessary to earn a 2.8% real interest rate when the rate of inflation is 4.8%, we can use the formula:
Nominal Interest Rate = Real Interest Rate + Inflation Rate.
By plugging in the values provided:
Nominal Interest Rate = 2.8% + 4.8%
= 7.6%
Therefore, to earn a 2.8% real interest rate with a 4.8% rate of inflation, you would need a nominal interest rate of 7.6% on your investment.