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
PolarNik [594]
10 months ago
15

last year, you earned a rate of return of 7.55 percent on your bond investments. during that time, the inflation rate was 2.19 p

ercent. what was your real rate of return? group of answer choices 5.25 percent 5.36 percent 5.78 percent 4.63 percent 4.90 percent
Business
1 answer:
pychu [463]10 months ago
4 0

The real rate of return is 3.15%.

What is real rate of return?
The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.


1+real rate = (1+rate of return) / (1+inflation)
1 + real rate = (1+0.0645) / (1+0.032)
1 + Real Rate = 1.0315
Real Rate = 0.0315 = 3.15%

To learn more about real rate of return
brainly.com/question/3578105
#SPJ4

You might be interested in
Revenue expenditures
solmaris [256]

Answer:

Answer A

Explanation:

Revenue expenditures are the expenditures during period in which the asset has been put into its usage. They are often discussed in the context of fixed assets. For instance if a company installs new equipment and has monthly costs of its maintenance, these costs are revenue expenditures. Therefore, they only present additional costs that do not necessarily increase asset's life.

4 0
3 years ago
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four useful
Ymorist [56]

Answer:

$10,000

Explanation:

Depreciation is charged to every asset based on the life and usage of such asset.

Straight line depreciation method charges equivalent depreciation each year of the useful life of the asset.

Here, as provided straight line depreciation = \frac{Cost\ of\ asset\ - Salvage\ value}{Life\ of\ asset}

Here, cost of asset = $48,000

Salvage value = $8,000

Thus, numerator in fraction = $48,000 - $8,000 = $40,000

Useful life of the asset = 4 years

Therefore, depreciation expense for each year = \frac{40,000}{4\ years} = 10,000

It will be same for each year, therefore, depreciation expense for year 2 = $10,000

3 0
3 years ago
Suppose a three-person comittee is formed for a culb by drawing names out of a hat. If the expected number of women is 2 and the
tangare [24]

Answer: 20 women

Explanation:

Making the total number of women in the club 'x', we can then do the following,

Total Number of Names in Hat, N

N = x + 10 ( total number of men)

therefore total number of names in the hat N=x+10

We need to select 3 people so sample size = 3

Using the Hypergeometric Distribution then we can then use the formula,

Expected number of women on the Committee = k * n / N

Where k is the total number

2 = x * 3 / (x + 10)

2 = 3x/(x +10)

3x = 2x +20

x = 20

There are 20 women in the club.

8 0
3 years ago
If an economy is producing at a point on its production possibilities frontier, it is: a.efficient in production and allocation.
irinina [24]

Answer:

d.efficient in production but not necessarily in allocation.

Explanation:

The production possibility curve portrays the cost of society's choice between two different goods. An economy that operates at the frontier has the highest standard of living it can achieve, as it is producing as much as it can using the same resources. If the amount produced is inside the curve, then all of the resources are not being used.

- all points on the curve are points of maximum productive efficiency

- However, an economy may achieve productive efficiency without necessarily being allocatively efficient. Market failure (such as imperfect competition or externalities) and some institutions of social decision-making (such as government and tradition) may lead to the wrong combination of goods being produced (hence the wrong mix of resources being allocated between producing the two goods) compared to what consumers would prefer, given what is feasible on the PPF.

8 0
2 years ago
e payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing
Harman [31]

Answer:

Invest

invest

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing

firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.

Thus the option that would yield the highest payoff is for both firms to advertise.

this is an example of prisoners dilemma

7 0
2 years ago
Other questions:
  • Helen Ashley is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. I
    7·1 answer
  • I<br>Explain terms Good and<br>examples in each case.<br>Service<br>and<br>give 3​
    8·1 answer
  • Over one-third of female offenders are serving time for ________ offenses
    6·1 answer
  • Statement
    11·1 answer
  • What is the expected dollar rate of return on dollar deposits with today's exchange rate at $1.10 per euro, next year's expected
    12·1 answer
  • An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
    13·1 answer
  • Suppose you earn $40,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 10 percent, r
    8·1 answer
  • Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances at the beginning and end
    6·1 answer
  • e. The noneconomic effects of unemployment include a sense of failure created in parents and in their children the costs of movi
    12·1 answer
  • The opportunity cost of attending college is likely to be highest for a high school graduate a. who is capable of playing a well
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!