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aksik [14]
3 years ago
5

The CPI (times 100) is 100 at the time that Frank makes the loan. It is expected to be 110 in one year and 121 in two years. Wha

t nominal rate of interest should Frank charge Sarah?
Business
1 answer:
igomit [66]3 years ago
8 0

Answer:

12% per year

Explanation:

first we must determine the inflation rate:

  • inflation rate year 1 = (110 - 100) / 100 = 10 / 100 = 0.1 or 10%
  • inflation rate year 2 = (121 - 110) / 110 = 11 / 110 = 0.1 or 10%

nominal interest rate = real interest rate + inflation rate = 2% + 10% = 12%

That way, Frank should collect = $1,000 x 1.12² = $1,254.40 in two years if he charges compound interest.

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Answer:

The debit adjustment to equipment would be $30,000.

Explanation:

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8 0
3 years ago
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natita [175]

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6 0
3 years ago
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d basic savings

Explanation:

I think not for sure

4 0
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Involuntary unemployment occurs when the wage rate is below the equilibrium wage rate. exists when there is an excess quantity o
Natali5045456 [20]

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Stretch goals" can be described as
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