25. Gianluigi wants to take out a loan, and Banca Mediolanum wants to charge him an annual real interest rate equal to \( 2 \% \). Assuming that the annualized expected rate of inflation over the life of the loan is \( 1 \% \) in Italy, determine the nominal interest rate that the bank will charge him. What happens if, over the life of the loan, actual inflation is I.5\%?