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Damm [24]
2 years ago
8

Consider a family who borrows $250,000 to purchase a new home at a fixed interest rate of 8.5%. If inflation increases from 4% t

o 5.5%, how will this impact the real interest rate the family will be paying?
Business
1 answer:
vitfil [10]2 years ago
3 0

The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).

<h3>Real interest rate </h3>

A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.

Learn more about real interest rate here:

brainly.com/question/13324776

#SPJ4

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If the exchange rate is 5 Egyptian pounds per U.S. dollar, a watch that costs $25 US dollars costs a. 125 Egyptian pounds b. 50
Anon25 [30]

Answer:

A. 125 Egyptian pounds

Explanation:

Let’s create a proportion using the following setup.

pounds/dollars=pounds/dollars

We know that 5 Egyptian pounds is equal to 1 dollar.

5 pounds/ 1 dollar= pounds/dollars

We don’t know how many pounds are in 25 dollars. We can say x pounds are in 25 dollars.

5 pounds / 1 dollar = x pounds/ 25 dollars

5/1=x/25

We want to find out what x is, so we need to get x by itself.

x is being divided by 25. The inverse of division is multiplication. Multiply both sides of the equation by 25.

25*(5/1)=(x/25)*25

25*5/1=x

25*5=x

125=x

$25 US dollars are equal to 125 Egyptian pounds. Therefore, the watch will cost 125 Egyptian pounds and choice A is correct.

5 0
3 years ago
Under the gold standard the fixed price of gold was $20.67 per ounce in the United States. The fixed price of gold was £4.2474 p
madam [21]
The answer of the question is b
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3 years ago
________ are transacted between international businesses and their banks, between banks, and between governments when it is desi
Oliga [24]

Answer: Swaps

Explanation:

A foreign exchange swap is a written agreement between two parties with different currencies to exchange such currencies at a specific period of time. In a swap deal, one party to the agreement gives out currency to the other party while also collecting collecting currency from such party. The written agreement usually contains such details like the interest on the amount of exchange, as well as the loan value of one currency against the other.

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Cheque issued for advertisement of rs 8000 journal entry​
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Answer:it is nice produre

Explanation:

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2 years ago
Assume you are going to lunch and have a choice of two meals. The first meal would give an increase in marginal utility of 100 w
pantera1 [17]

Answer:

C) Third

Explanation:

The first meal gives you 4 units of utility for every dollar spent (= 100 utility / $25).

The second meal gives you 5 units of utility for every dollar spent (= 10 utility / $2).

The third meal gives you 10 units of utility for every dollar spent (= 50 / $5). We should choose the meal that provides us with the greatest utility per dollar.

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