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
forsale [732]
3 years ago
15

Michael has been saving his money and wants to invest it. after doing some research, he has decided to invest $20,000 into a cer

tificate of deposit. the interest rate on the cd is 3% with a term of five years, and the interest is paid out annually. based on recent inflation, michael is planning on an annual inflation rate of 2%. how much interest will michael earn on this cd in the first year, based on the nominal interest rate?
Business
2 answers:
ivolga24 [154]3 years ago
8 0

Answer: Micheal will earn an interest of $600 in the first year based on  nominal interest rates.

Since we need to compute the interest paid out at the end of year 1, we use the following formula in order to find the interest

SI = P * N * R

where

SI = Simple interest

P = Principal or initial amount invested

N = Number of years

R = Nominal interest rate

Nominal interest rate refers to the rate quoted on the CD or the rate agreed upon. In this question, the nominal interest rate is 3%.

Substituting the values in the formula above we get,

SI = 20000 * 1 * 0.03

SI = 600

LUCKY_DIMON [66]3 years ago
7 0

Answer:

How much interest will michael earn on this cd in the first year, based on the nominal interest rate? $600

How much interest will Michael earn on this CD in the first year, based on the real interest rate?  $200

This is correct 100%

You might be interested in
Often general and special educators share the common goal of supporting students with disabilities in general education classroo
Law Incorporation [45]

Answer:

True

Explanation:

In this context the support allow the students with disabilities to be at the same level of opportunities as the other student. This translates into inclusion, meaning the disabled student can feel he is part of the class.

I hope you find this information useful and interesting! Good luck!

4 0
3 years ago
HELP ASAP PLS!!! Complete the following sentence.
Alex73 [517]
A regimen with a schedule outline or summary of class topics and assignments
5 0
3 years ago
when calculating net price, why do you think loans are not deducted from sticker price even if they are typically offered to you
storchak [24]

The reason loans are not deducted from sticker price even if they are typically offered to you in a financial aid package is that "the net price is actual money that you or any individual will be paying."

This is evident because a net price is the sticker price minus the student's financial aid, scholarships, grants, and other support.

Unlike sticker price, the net price is the college student's amount would eventually pay in his college years.

A sticker price is the whole amount of the annual or session cost of a college education.

Hence, in this case, it is concluded that college students should concentrate more on the net price instead of a sticker price.

Learn more here: brainly.com/question/20635459

3 0
3 years ago
The ________ takes into account such costs as deteriorated customer relations and lost sales
Sergio039 [100]

The <u>Full cost view of maintenance</u> takes into account such costs as deteriorated customer relations and lost sales.

a cost that an employer has when they employ someone, in addition to the cost of paying the person's salary or wages. cost is the amount or equivalent paid or charged for something .

Examples of costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Direct, indirect, fixed, and variable are the 4 main kinds of cost.

learn more about cost here

brainly.com/question/1153322

#SPJ4

7 0
2 years ago
Over the past year you earned a nominal rate of interest of 10% on your money. The inflation rate was 5% over the same period. T
Veronika [31]

Answer:

5%

Explanation:

Purchasing power refers to the amount of goods and services a unit of currency can buy.

Purchasing power can be determined by finding the real interest rate.

Real interest rate = Nominal interest rate - inflation rate

10% - 5% = 5%

I hope my answer helps you

5 0
3 years ago
Other questions:
  • The Sanchez Company purchased a delivery truck on February 1, 2018. The purchase agreement required Sanchez to pay the total amo
    14·2 answers
  • Melissa has an old car that is desperately in need of expensive repairs. she is trying to decide whether to spend the $1,500 she
    6·1 answer
  • You bought a bond 8 years ago for​ $1,000. It has a​ $1,200 face value and a nominal annual bond rate of​ 10%, paid semiannually
    7·1 answer
  • Briefly discuss the purpose and role that each type of financial institutions (depositary, contractual, and investment) play in
    10·1 answer
  • Another way that malicious code can threaten businesses is by using mass bulk e-mail (spam), spyware, persistence cookies, and t
    15·1 answer
  • If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual order
    14·1 answer
  • Pinto Corp. sells $300,000 of bonds to private investors. The bonds have a 4% coupon rate and interest is paid semiannually. The
    5·1 answer
  • On January 1, year 8, Crimson Corp., a closely held corporation, issued 5% bonds with a maturity value of $90,000, together with
    5·1 answer
  • 4-55 A firm expects to install smog control equipment on the exhaust of a gasoline engine. The local smog control district has a
    6·1 answer
  • Please Help soon
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!