Answer:
Inflation = 9.5%
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Given the following data;
Nominal interest rate = 7 percent.
Real interest rate = -2.5 percent
Real interest rate = Nominal interest rate - Inflation
Inflation = Nominal interest - Real interest rate
Inflation = 7 - (-2.5)
Inflation = 9.5%
operations management is considered to be doing a great job when you are able to lead your crew and make sure all of the inventory is in order.
Answer:
Monthly deposit= $485.93
Explanation:
Giving the following information:
You want to retire exactly 35 years from today with $2,020,000 in your retirement account.
interest rate= 10.35 percent compounded monthly
First, we need to calculate the monthly interest rate.
Monthly interest rate= 0.1035/12= 0.008625
Now, using the following formula we can calculate the monthly deposit:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
n= 35*12= 420
A= (2,020,000*0.008625) / [(1.008625^420)-1]
A= $485.93
Answer:
A share of this stock be worth$ 21.88 four years from now
Explanation:
Amount of annual dividend that will be paid the next year = $ 2.05
increase in dividend by 3.5% =
= increase by a factor of 1.035
Since there is a 14% return, overall increase in dividend =
= 9.857
<em>Note:</em>
<em>0.035 was obtained from </em>
<em>= 0.035 (dividend increase)</em>
<em>0.14 was obtained from </em>
<em> = 0.14 (percentage return required)</em>
over the next 20 years his new value of dividend will be
New value of dividend = $2.05 + 9.857 = 11.907
Converting to a percentage,
= 1.1907
Net dividend increase =
Dividend returns minus increase in dividend for 20 years is given as
14% - 3.5% = 10.5%
From the above, the
Worth of a share of his stock 4 years from now can be computed by
(dividend X Percentage increase in 20 years)/ net percent dividend increase + (increase in 4 years/ net dividend increase) X 100
+
× 100 =$21.88
∴ A share of this stock be worth$ 21.88 four years from now
Awnser would be D for plato