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goblinko [34]
1 year ago
14

suppose that lenders want to receive a real rate of interest of 5%, and that they expect inflation to remain steady at 3% in the

coming years. based on this, lenders should charge a nominal interest rate of
Business
1 answer:
HACTEHA [7]1 year ago
7 0

The interest rate is 7%.

<u>Solution:</u>

The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.

To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.

Learn more about The interest rate here:-brainly.com/question/25793394

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Kate and Bill secured a loan with a 75% loan-to-value ratio. The interest rate was 7.125% and the term was for 30 years. The fir
Volgvan

An appraised price is an evaluation of a property's fee-based totally on a given factor in time.

An appraised cost is an evaluation of a property's value based totally on a given factor in time. The evaluation is accomplished by means of a professional appraiser for the duration of the mortgage origination technique. The appraiser is normally selected by way of the lender but the appraisal is paid for by way of the borrower.

Actual property professional opinion is typically towards the idea of paying extra than a property's appraised price. Even if you make up the difference on below-appraised assets, you may have assets well worth much less than what you paid.

If buyers are few and far among whilst you list your house, there may be a hazard the marketplace cost may be lower than the appraised price. then again, in case you're seeing a ton of interest in your own home from a couple of consumers, you could discover that the marketplace value is better than the appraisal value.

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4 0
1 year ago
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
elena55 [62]

Answer:

Cost of land= 564,500

Explanation:

Cost of land = Purchase price - Salvage + Demolition cost + Land preparation

= 540,000 - 22,000 + 39,000 + 7,500

= 564,500

5 0
3 years ago
A convenience store chain attempts to be responsive and
lidiya [134]

Answer:

Explanation:

Store should become a responsive one in a way, that customers can see their all products online, add in their shipping cart and come and have a look on retail store and be able to buy buy or vice versa as well. Plus a responsive customer service team empanelled with Sales team should be present to assist customers in case of service/ sales enquiries, thus delivery high service level satisfaction.

4 0
3 years ago
Sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. al
irakobra [83]

Answer:

Critique of advertising.

Explanation:

Advertising is a marketing strategy used by organizations or individuals to convince or persuade a consumer to buy their products.

It is used to promote goods and services using a multimedia channel such as television, radio, billboards etc.

Critique of advertising postulates that adverts usually urge or prompt consumers to buy products even when they don't need it.

6 0
3 years ago
Trumbull Corporation budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Experience
GrogVix [38]

Answer:

a. $169,800

Explanation:

As for the provided information we have,

Sales data, for each month

July              $120,000

August         $211,000

September   $198,000

Cash receipt budgeted for September shall be:

36% of sale of the month of July = $120,000 \times 36% = $43,200

60% of sale of the month of August = $211,000 \times 60% = $126,600

Thus, total expected amount = $169,800

Therefore, correct option is

a. $169,800

4 0
3 years ago
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