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
GenaCL600 [577]
2 years ago
12

A bank wants to earn a real return of 5% on a loan. Suppose the bank expects the inflation rate to be 4%.

Business
1 answer:
Bumek [7]2 years ago
6 0

9% is the minimum nominal interest rate

<h3>What is nominal interest?</h3>

In finance and economics, the nominal interest rate or nominal rate of interest refers to one of two things: the rate of interest before inflation adjustment, or the rate of interest "as stated" without adjustment for the full effect of compounding.

The relationship between nominal and real interest rates can be approximated as nominal rate = real interest rate + inflation rate or nominal rate - inflation rate = real interest rate.

Nominal interest rates can be influenced by a variety of factors, including money demand and supply, federal government action, central bank monetary policy, and many others. The short-term nominal interest rate is used by central banks as a monetary policy tool.

To know more about nominal interest follow the link:

brainly.com/question/25816355

#SPJ4

You might be interested in
Start period 02 | 01 | 2019 End period 02 | 15 | 2019 Gross Pay $1,837.00 Earnings Taxes Deductions $1,837.00 Federal (8.24%) =
mario62 [17]

Answer:

Net Pay is equal to $1,474.19.

Explanation:

Net is Gross Pay minus taxes deductions. Therefore, Net Pay can be calculated as follows:

<u>Particulars                                                           ($)                    ($)      </u>

Gross Pay                                                                              1,837.00

<u>Taxes Deductions</u>

Federal (8.24% of Gross Pay)                        (151.37)

FICA Medicare (1.45% of Gross Pay)             (26.64)

FICA Social Security (6.20% of Gross Pay)  (113.89)

State - OK (3.86% of Gross Pay)                  <u>  (70.91)  </u>

Total                                                                                     <u>  (362.81) </u>

Net Pay                                                                               <u>  1,474.19  </u>

<u />

Therefore, Net Pay is equal to $1,474.19.

7 0
3 years ago
Suppose that the amount of time it takes to build a highway varies directly with the length of the highway and inversely with th
andrew-mc [135]

Answer:

worker needed to build highway is = \frac{k\times L}{T}  

Explanation:

given data

highway length = L

time taken = T

no of worker = N

solution

we know that highway is varies directly with length and varies inversely with the number of worker

so we can say

T ∝ \frac{L}{N}     ................1

T = k × \frac{L}{N}

here  is constant

so worker needed to build highway is = \frac{k\times L}{T}  

3 0
4 years ago
On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $27.70 per share. On March 1, a dividend of
klio [65]

Explanation:

The calculation is shown below:

a. The proceeds from the short sale (net of commission) is

= Number of shares short sold x (price of short sale - commission paid per share)

= 100 shares x ($27.70 - 0.25)

= $2,745

b. The dividend payment is

= Number of shares × dividend per share

= 100 shares × $3.30

= $330

c. Value of an account is

= Proceeds from short sale, commission net -  dividend paid - cost including commission

where,

Cost including commission is

= Number of shares short sold x (price of buying stock + commission paid per share)

= 100 shares × ($22 + 0.25)

= $2,225

So, the value of an account is

= $2,745 - $330 - $2,225

= $190

5 0
4 years ago
What is Centinels view of the three-party system
tia_tia [17]
People could not create a fair system with three separate powers.
A three-branch system could last not just one day, but many years.
Wise humans could make three equal powers in government.
<span>It would be foolish to have fewer than three branches of government.</span>
6 0
3 years ago
Unearned fees appear on the a.balance sheet as a current liability b.balance sheet in the current assets section c.income statem
forsale [732]

Answer:

a.balance sheet as a current liability

Explanation:

Unearned fee refers to money received from a customer for services not yet done,  or for goods not delivered. It is a prepayment for work not yet done. Unearned fees are reported in the accrual accounting system. The economic activity that results in earning revenue has not been executed.

Unearned fees create an obligation for the business to honor. The business becomes indebted to the customer who has made a prepayment. An unearned fee is thus a debt and has to be recorded as a liability. In practice, the service or goods paid for in advance should be delivered within the same period. Therefore, the unearned fee is recorded as a current liability.

7 0
4 years ago
Other questions:
  • Several students are arguing over the actual year that the berlin wall came down. some of the students think it was in 1990, sev
    6·1 answer
  • Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of
    11·1 answer
  • Stores A, B, and C have 120, 40, and 90 employees, respectively, and 40, 65, and 50 percent of them respectively are women. An e
    10·1 answer
  • tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000, and Daisy'
    12·2 answers
  • Vernon is a cash basis taxpayer with a calendar tax year. On November 1, 2018, Vernon entered into a lease to rent a building fo
    12·2 answers
  • Baby boomers are and example of what type of trend
    9·1 answer
  • Economics (FoolProof)
    5·1 answer
  • In the long run, if the production of all goods increases for a society (there is economic growth), it will cause the production
    5·1 answer
  • You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the va
    12·1 answer
  • When adjusting the bank balance in a bank reconciliation, which item must be added to the bank balance?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!