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aleksklad [387]
3 years ago
9

Susan put her savings into a mutual fund that paid a nominal interest rate of 3 percent a year at the beginning of 2005. the cpi

was 225 at the beginning of the year and 232 at the end of the year. susan earned a real interest rate of _____ percent a year. round your answer up to the second decimal.
Business
1 answer:
Ksju [112]3 years ago
8 0

Answer:

-0.11% per year

Explanation:

Here, we want to calculate real interest rate.

Firstly, we calculate the inflation rate

mathematically the inflation rate = (cpi at the end of year - cpi at the beginning of year)/cpi at the beginning of year * 100%

Inflation rate = (232-225)/225 * 100% = 3.11%

we now proceed to calculate the real interest rate

mathematically, real interest rate = Nominal interest rate - inflation rate

from the question, nominal interest rate = 3%

real interest rate = 3% - 3.11% = -0.11%

This means that the real interest rate earned by sally is -0.11% per year

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You buy a lottery ticket to a lottery that costs $10 per ticket. There are only 100 tickets available to be sold in this lottery
arsen [322]

Answer:

Expected Loss will be $3

Explanation:

Expected Loss can be calculated by  multiplying the probabilities to Net expected outcome.

Probabilities

Prize ( $460) = 1 / 100

Prize ( $80 ) = 2 / 100

Prize ( $20 ) = 4 / 100

No prize = 100/100 - (1+2+4)/100 = 93/100

Expected value = [( 460 - 10 ) x 1/100 ] + [( 80 - 10 ) x 2/100 ] + [( 20 - 10 ) x 4/100 ] + [( 0 - 10 ) x 93/100] = 4.5 + 1.4 + 0.4 - 9.3 = -$3

3 0
3 years ago
Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He make
sergejj [24]

Answer: d. path–goal

Explanation:

The Path-goal theory of leadership espouses that leaders should be dynamic and use whichever leadership style would be best suited to the abilities of their subordinates and the work environment that they are in.

It is then divided into four styles with the relevant style here being the "directive path-goal clarifying leader behavior". Under this style, the manager specifies exactly what it is that they want from the employees and then rewards them when they meet the required objectives.

7 0
2 years ago
Apple, known for creativity and innovation, keeps its new innovations consistent with previous product lines to maintain long-te
Mamont248 [21]

Answer: Relational

Explanation: Relational orientation is a term in marketing where a marketer or producer identify the need of its customers or consumers and make available products that will meet their need and help to build a good relationship with the consumers or customer. This term is used by most multinationals like Apple etc to build brand loyalty and maintain a good market share.

3 0
3 years ago
Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run
konstantin123 [22]

Answer:

Ease of entry into the market

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services.

In the long run, perfect competition make zero economic profit because if firms are making economic profits in the short run , new firms would enter into the industry in the long run. This is made possible because of the ease of entry into the market.

I hope my answer helps you

3 0
3 years ago
A company’s production budget requires the following units of a single product for the upcoming year: 1st quarter 60,000 units 2
maks197457 [2]

Answer:

165,000 pounds

Explanation:

A Purchase Budget is required to determine the quantities and cost of purchases required for use in production.

Materials Purchase Budget for Second Quarter (Pounds)

Budgeted Production Materials (80,000 x 2)                    160,000

Add Budgeted Closing Materials (90,000 x 2 x 25%)        45,000

Total Materials                                                                     205,000

Less Budgeted Opening Materials (80,000 x 2 x 25%)    (40,000)

Budgeted Material Purchase (pounds)                               165,000

Therefore,

Budgeted purchases of material for the second quarter would be 165,000 pounds

8 0
3 years ago
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