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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%

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By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual
Verizon [17]

Answer:

15.6%

Explanation:

Investment = $3200

Net savings = $500

Investment returns in % = Net savings/Investment × 100

= 500/3200 × 100

= 0.15625 × 100

= 15.6%

7 0
3 years ago
Which pattern of consumption is recommended to reduce humanity's global footprint? Buying goods from firms that always seek to m
tino4ka555 [31]

Answer:

The correct answer is letter "B": Choosing less harmful products.

Explanation:

Everyday companies are growing consciousness on the type of products the human being uses to satisfy basic needs or simply perform routine duties. Though, many of those the items used can cause harm to the environment. <em>Mothballs, oven cleaners, furniture polish and stain, and toilet bowl cleaners</em> are examples of those items that can put individuals and eventually societies at risk.  

<em>By choosing less harmful products like the mentioned above and choosing alternative solutions to cover common activities, humanity's global footprint will be reduced.</em>

5 0
3 years ago
If real GDP per person were equal to $2,620 in 1900 and grew at a 3 percent annual rate, what would be the value of real GDP per
gavmur [86]

If real GDP was 2630 and grew annually at 3%, The value of real GDP ten years later is going to be $67670

<h3>How to solve for real GDP </h3>

We have to start by starting the formula A = P(1+r)^n

We have P = principal = 2620

We have r as the rate of interest = 3% = 0.03

We have the number of years n = 110

We have to put these values in the formula we have

A= 2620(1+0.03)^110

= 67669.9

This is approximated to be

= 67670

Read more on Real GDP here:

brainly.com/question/17110800

#SPJ1

5 0
2 years ago
A retail company feels that it has a mixed identity. Some of the leadership is focused on promoting the company as offering the
mr Goodwill [35]

Answer:

D. Business Level strategy

Explanation:

Business level strategy is a plan that involves providing value to customers while also gaining competitive advantage in specific industry. They are definitive plans and actions put in place to attain and satisfy customers by offering goods and services that meet their needs whole also gaining competitive advantage by exploiting core competencies in specific industries or products/service market. In this scenario, business level strategy helps find answers to leadership focused on promoting the company as offering the highest quality, other leadership focused on lowering prices to attract customers and the team working on strategic management to compete against its rivals within the same industry and product category.

7 0
3 years ago
The following company information is available for March. The direct materials price variance is: Direct materials purchased and
lord [1]

Answer:

Option (d) $7,200 unfavorable.

Explanation:

Data provided in the question:

Standard price = $78

Actual price = $80

Standard quantity = 3,700

Actual quantity = 3,600

Now,

The direct material price variance

= ( Standard price - Actual price ) × actual quantity

= ( $78 - $80 ) × 3,600

or

= - 7,200       [ negative sign depicts unfavorable ]

Hence,

Option (d) $7,200 unfavorable.

5 0
3 years ago
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