1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LekaFEV [45]
2 years ago
12

Jack recently took out a loan from Diane at an interest rate of 4 percent. Diane expected this year’s inflation rate to be 1 per

cent and the real interest rate to be 3 percent. The loan is due at the end of this year. Complete the table below by computing the real interest rate for each possible inflation rate. For each situation, determine whether the unexpected inflation level benefits Jack or Diane.
Business
1 answer:
defon2 years ago
5 0

The complete question has been added with an image for better understanding of the concept. The beneficiaries of the inflation and interest rates will be,

  1. When inflation is 1 percent, Diane will benefit more than Jack;
  2. When inflation is 0 percent; Diane will benefit more than Jack;
  3. When inflation is 4 percent; Jack will benefit more than Diane;
  4. When inflation is -2 percent; Diane will benefit more than Jack.

<h3>What is inflation?</h3>

A given increase in rates or prices of any commodity, including monies, over a particular financial period is known as inflation.

The rates and beneficiaries due to the unexpected change in inflation for the above situation is given attached in the image in the form of a table.

Hence, the significance of inflation is as mentioned.

Learn more about inflation here:

brainly.com/question/15692461

#SPJ1

You might be interested in
Each of the following situations is independent. Work out your own solution to each situation, and then check it against the sol
saw5 [17]

Morgan will get $1600 with the process of simple interest.

<h3>what is simple interest?</h3>

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, therefore a creditor will only charge interest on the principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.

Rate of interest = 12%

principal = $1000

Time = 5 years

Simple interest

=\frac{1000 \times 5 \times 12}{100}\\=600

Now amount = 1000+600 = 1600.

Therefore, Morgan will get $1600.

To learn more about simple interest from the given link

brainly.com/question/25793394

#SPJ4

8 0
2 years ago
Match the term to the example
topjm [15]

Answer:

li siento no puesobhsdar las resouestav

3 0
3 years ago
For the purpose of process analysis, which of the following measures would be considered an appropriate flow unit for analyzing
ira [324]

Answer:

a. Sales Dollars

d. number of customers served per day

Explanation:

In process analysis, flow unit can be described as the fundamental unit of analysis in any scenario whatsoever. This can include the customers, phone call, money, goods produced etc. Furthermore, the flow rate is simply the number of flow units. From the example, Sales Dollars and the number of customers served per day are appropriate flow units, while gasoline pumps and employees working are all resources and not flow units.

4 0
4 years ago
Read 2 more answers
Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy t
AVprozaik [17]

Answer:

A) -$10,020,000

Explanation:

Year 0 cash flow = -(Cost of Machine + Installation Cost + Clean Room Cost)

Year 0 cash flow = -($7,000,000 + $20,000 + $3,000,000)

Year 0 cash flow = -$10,200,000

So, the incremental free cash flows associated with the new machine in year 0 is ($10,200,000).

4 0
3 years ago
The marketing *blank*
Firlakuza [10]
Cnxnnxnxnx didn’t bend d s and bdjsbsnsnd
3 0
3 years ago
Other questions:
  • Very few people in the United States today attempt to follow the example of Henry David Thoreau in On Walden Pond and "go into t
    5·2 answers
  • In a credit application, besides one's capacity to pay, creditors also consider which of the following?
    8·1 answer
  • As it advances on the ________, Boston Market has added pickup, delivery, and full-service catering to its original restaurant f
    11·1 answer
  • Which of these usually require students to maintain a specific number of hours and grade point average?
    6·1 answer
  • A customer pays a purchase price of $1,375 for a bond. This purchase price could also be referred to as​
    8·1 answer
  • Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,
    12·1 answer
  • Swifty Pest Control Products has the following information available:
    15·1 answer
  • Marketers can use to link the virtual world of online social networking with the
    15·2 answers
  • Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Julie
    12·2 answers
  • Teams often fail because
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!