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
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%

You might be interested in
Select an e-commerce company. Visit its website or mobile app and describe its business model based on the information you find
qwelly [4]

Explanation:

The e-commerce site visited was from Adidas, one of the largest sporting goods companies in the world. The value proposition that the company offers to the client is the creation of a marketing focused on the young and modern public, which can be seen on its website, where young models with a cool look use the brand's sneakers and clothing, always with a lot of youthful color and personality. The brand also creates value using influential marketing, sponsoring major celebrities and sports around the world, being a very strong brand and recognized for its values. The company has comparative advantages with competing companies in the sports segment, due to the fact that Adidas seeks a new look and refinement for its products, which can be seen in its collections where there are partnerships with several famous designers and personalities.

There is information about the company at the bottom of the page, which reveals about its multifaceted, simple and fast organizational structure, as written on the website, which reinforces the company's global values.

5 0
3 years ago
Which one of the following would probably benefit the most from personal financial planning services?
BartSMP [9]
The answer is B)<span> Older persons nearing retirement and needing to know what their income will most likely be during retirement

Option D, would be wrong since without the means to have a financial planning assistant would not really be able to achieve much aside from probably saving some more money.

However, older people who are nearing retirement are probably at the top of their careers and have a lot of savings in cash, bongs, stocks and maybe even property.

It is these kinds of people who can get maximum benefit from proper financial planning.
</span>
4 0
3 years ago
Read 2 more answers
A speaker says, "because the japanese make the best stereo sound systems in the world, you should consider buying a japanese-mad
Advocard [28]
<span>The speaker is using the fallacy of building on an unproven assumption. The speaker has made the assumption that the Japanese make the best stereo sound systems in the world. This is merely his/her opinion, and is not a proven fact. Thus, when the speaker bases another argument on that assumption, he has used a fallacy in reasoning.</span>
7 0
3 years ago
Andrew wants to purchase a new computer and go to the caribbean for spring break. the computer is priced at 1299, and the vacati
Mamont248 [21]

Andrew writes a check for $1,299 which is the  medium of exchange.

What is the way of transaction ?

  • A sale is a completed agreement between a buyer and a dealer to change goods, services, or fiscal means in return for plutocrats.
  • The term is also generally used in commercial accounts. As a business secretary, this plain description can get tricky.
  • A sale may be recorded by a company before or later depending on whether it uses an addendum account or cash account.

Here,

Andrew can easily determine that the price of the computer is more than the price of the vacation = Unit of Account

Andrew has $1,574 in his checking account

= Store of value

Andrew writes a check for $1,299

= Medium of exchange

Learn more about Way of transaction here:

https://brainly.in/question/2253597

#SPJ4

3 0
1 year ago
A farmer decides she wants to grow certified organic corn and sets out to meet all usda standards to do so. her crop grows well
disa [49]
<span>Crop rotation. Crop rotation is growing a series of dissimilar or different types of crops in the same plot in sequenced seasons. Peas, like other legumes, are nitrogen fixing crop. They recover depleted nitrogen and other nutrients squeezed out by the organic corn, making nitrogen available to the soil for use again. This practice takes advantage of the uniqueness of each crop make use of diverse natural and ecological resources present in the soil to maximize yield and increase output. The organic corn requires a lot of nutrient for root growth and with repeated use, the available nutrients has gotten depleted. Planting legumious crops which are good nitrogen-fixers will help to recover lost nutrient.</span>
7 0
4 years ago
Other questions:
  • Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and ending balances in the prepaid
    11·1 answer
  • A company’s past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, an
    15·1 answer
  • Which of the following activities should be expensed currently as R&amp;D costs? (a) Testing in search for or evaluation of prod
    13·1 answer
  • In the process of brainstorming his goals Robert realize his web business was more about money than creativity his decision to i
    14·1 answer
  • Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and
    11·1 answer
  • G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manag
    5·1 answer
  • Please explain the advantages and disadvantages of an Advertising Organization System.
    15·1 answer
  • John worked 43 hours last week. His hourly rate is $9.00. He has the following deductions taken from his pay: Social Security ta
    11·1 answer
  • 1. Capital budgeting decisions are used to determine how to raise the cash necessary for investments. a.True b. False 2. A firm
    12·1 answer
  • Suppose that the price of a cupcake is $4. At this price, 50 cupcakes will be demanded. If the price rises to $5 per cupcake, co
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!