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viktelen [127]
3 years ago
12

If the inflation rate is 5 percent and a $1000 bank deposit increases in one year to $1120, then the real interest rate for that

deposit is...
a. 12 percent
b. 12.5 percent
c. 7 percent
d. 7.2 percent
Business
1 answer:
Yuki888 [10]3 years ago
7 0

Answer:

c. 7 percent

Explanation:

The real interest rate will be net of the effect of inflation.

In this case we are givne with the principal and the amount.

We will solve for nominal rate first:

amount/ principal - 1 = rate

1,120/1,000 - 1 = 0.12

Now, we calculate the real rate of return. we subtract the inflation from the nominal to achieve the real rate.

nominal - inflation = real rate

0.12 - 0.5 = 0.07

The real interest rate will be of 0.07 = 7%

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An adequate supply of complements to a product results in: a. more customers opting for the product. b. higher switching costs.
Rama09 [41]

Answer: a. more customers opting for the product

Explanation: It is important for a companies and businesses to ensure that in addition to the product they deal in itself, there is an adequate supply of complements. Complements to a product are products whose use is related to the use of an associated product, as such, its appeal increases with increasing use or popularity of its complement. An adequate supply of complements to a product results in more customers opting for the product.

8 0
3 years ago
A manufacturer replenishes their packaging materials according to the economic order quantity model. They use 25,000 cases of pa
Sergio [31]

Answer:

$300,000 in total, $6000 per order

Explanation:

25,000/500 = 50

50*12=600

500*12=6000

50*6000=300000

7 0
3 years ago
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In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplif
Verdich [7]

Answer:

In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplified based on the results of a much more complicated model.) Demand is given by QD = 105 − 1.5P where QD is in millions of tires per year. Supply is QS = 1.5873P − 15.87.

Explanation:

4 0
3 years ago
If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the prod
mestny [16]

Answer: C. 50%

Explanation:

From the above question, If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the production process then the percentage completion for conversion costs is 50%

3 0
3 years ago
Claremont Company specializes in selling refurbished copiers. During the month, the company sold 180 copiers at an average price
Bess [88]

Answer:

B

Explanation:

Since the average copier was sold $3000

Budgeted 175 copier was sold $3200

Therefore $3000+$3200= $6200

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$1116000-$540000

=$576000

4 0
3 years ago
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