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
frozen [14]
3 years ago
7

Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of

the two years. The annual real rate of interest is:______.
A. 6 percent.
B. 8 percent
C. 2 percent.
D. 3 percent.
Business
1 answer:
Kisachek [45]3 years ago
5 0

Answer:

C. 2 percent.

Explanation:

The computation of the annual real rate of interest is presented below:

Provided that

Nominal annual interest rate = 8%

Inflation rate = 5%

So, the annual real rate of interest is

Real rate of return = {( 1 + nominal annual rate of return) ÷ ( 1 + inflation rate)} - 1

= {( 1 + 0.08) ÷ ( 1 + 0.05)} - 1

= 2%

You might be interested in
Fill in the blanks:
podryga [215]

Answer:

(i) Base year prices

(ii) between two consecutive years

Explanation:

formula for GDP deflator is (real GDP)/(nominal GDP) x 100 which is the numerator real GDP where prices are valued at the current year adjusted to inflation or deflation and then the denominator where prices are valued at a base year where prices are valued at a nominal year which are not adjusted to any inflation or deflation.

The CPI ( consumer price index) is calculated by determining the rise or fall in price of a good or goods in two consecutive periods which in turn gives us the increase or decrease in price percentage.

4 0
3 years ago
Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
mixas84 [53]

Answer:

$65.37

Explanation:

Calculation for how much are you willing to pay today to purchase one share of the company's stock

Using this formula

P/0 = D0 ( 1 + g ) / R-g

Let plug in the formula

P/0 = $2.60 (1 + .056) / .098 - .056

P/0 = $2.60 (1 .056)/0.042

P/0=$2.7456/0.042

P/0=$65.37

Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37

6 0
3 years ago
jervis sells 3400 of its accounts receivable to northern bank in order to obtain necessary cash northern bank charges a 2% facto
lesya692 [45]

Answer:

Factoring fee = 2% * Account Receivable

= 2% * $3,400

= $68

​

Date  Account Titles and Explanation     Debit    Credit

          Cash                                                   $3,332

          Factoring expenses                           $68

                    Account receivables                             $3,400

          (To record the receipt of cash against the receivables)

6 0
3 years ago
Nikhil is a design manager for a production company. He independently assigns teams, chooses projects, researches trends, and is
Papessa [141]

Answer: Based on this description, it's safe to say that Nikhil's job is high in c. autonomy.

Explanation:

What is meant by an autonomy character?

This is a person who is able to decide or make decisions without being forced to do so they are independent individuals who can take control of their own tasks at a very high standard level. They are professionally capable of using their freedom to make exceptional decisions that are well thought of and of high standard.

Nikhil works independently , is able to distribute the work to the team and is able to provide proper standard report every month without being told or forced to do so this qualifies under autonomy.

6 0
3 years ago
Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development t
gtnhenbr [62]

Answer:

Intrapreneurs

Explanation:

An intrapreneur is an employee who is responsible for creating new products in an organization. An intrapreneur is an individual who converts an idea into a finished product. An intrapreneur must possess the ability to create something unique, they must be self motivated individuals who are willing to take calculated risks inorder to achieve their goals.

An intrapreneur possess entrepreneurship skills, they must be able to inspire other employees to create something new because an organization will loose it's relevance if new products are not developed.

6 0
3 years ago
Other questions:
  • A project layout is: Group of answer choices
    9·2 answers
  • The major consideration of whether something can serve as money is that it must be
    11·1 answer
  • The firm's target capital structure should do which of the following?
    15·1 answer
  • Government survey takers determine that typical family expenditures each month in the year designated as the base year are as fo
    14·1 answer
  • This is an example of an?
    7·1 answer
  • Các yếu tố ảnh hướng đến chất lượng<br> , yếu tố quan trọng . Tại sao ?
    10·1 answer
  • What are the OSHA guidelines for reporting injuries, illnesses, and fatalities?
    6·1 answer
  • Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
    10·1 answer
  • If Doria needs a short-term loan, what type of loan would you recommend she seek and from what type of financial institution? Ju
    11·1 answer
  • n 2012, alder inc. (seller) and dell, inc. (buyer) signed a long-term sales contract that provided for cashier's check payments
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!