Answer:
Nominal rate of return= 10.96%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation. </em>
<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
</em>
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622
Nominal rate of return = 0.109622
× 100 = 10.96%
Nominal rate of return= 10.96%
Answer:
The break-even point measured in sales dollars is $8
Answer:
B. Escalator Clause
Explanation:
An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation.
Answer:
Is teamwork skills
Explanation:
Working well in a team mean:
Work with a group to achieve a goal or shared result effectively
Listen to team members.
Take into account the ideas of all the team
Answer:
You must deposit $14,824.07
Explanation:
Giving the following information:
Sister:
Investment= $14,000
Interest rate= 10.5%
Number of years= 9
You:
Investment=?
Interest rate= 9.8%
Number of years= 9
First, we need to calculate the future value of your sister:
FV= PV*(1+i)^n
FV= 14,000*(1.105^9)= $34,386.55
Now, we can determine your deposit:
PV= FV/(1+i)^n
PV= 34,386.55/ (1.098^9)= $14,824.07
