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
earnstyle [38]
3 years ago
11

Treasury bills are currently paying 4.7 percent and the inflation rate is 2.2 percent. a. What is the approximate real rate of i

nterest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Marizza181 [45]3 years ago
8 0

Answer:

a.

2.5%

b.

2.45%

Explanation:

The approximate real rate of return can be derived from nominal rate of return formula given below:

nominal rate of return=real rate of return+inflation rate

real rate of return=nominal rate of return-inflation rate

real rate of return= 4.7%-2.2%=2.5%

The exact real rate of return can be derived from exact real rate of return formula given below

real rate of return=(1+nominal rate of return)/(1+inflation rate)-1

real rate of return=(1+4.7%)/(1+2.2%)-1

real rate of return=1.02446184 -1=2.45%

You might be interested in
Tom sells his father's watch for $100 to sue. he later finds out from his father that the watch was an expensive rolex. tom want
Daniel [21]

The court would rule in sue's favor because courts seldom inquire into the adequacy of consideration.

In contracts, <em>consideration </em>just means the <em>exchange of things of value</em>. There has to be an exchange of things of value for there to be an enforceable contract, and in this case a watch was exchanged for money. It is rare for courts to rule on how much consideration is expected because people are generally free to set their own prices and not sell if the price is too low. That is not for a court to decide (in most cases).

8 0
2 years ago
In the economy of Panicia, the monetary base is $1,000. People hold a third of their money in the form of currency (and thus two
Angelina_Jolie [31]

Answer:

(a) rr: 1/3, cr: 0.5, m:1.8 M: 1800

(b) 1500

(c) 200

8 0
3 years ago
he following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
Serhud [2]

Answer:

Purchases= $1,091,000

Explanation:

Giving the following information:

Beginning Raw materials inventory = $549,000

Ending Raw materials inventory= $612,000

The raw materials used in production= $1,028,000.

<u>To calculate the raw material purchased, we need to use the following formula:</u>

Purchases= production + ending inventory - beginning inventory

Purchases= 1,028,000 + 612,000 - 549,000

Purchases= $1,091,000

4 0
3 years ago
Merger Co. has 10 employees, each of whom earns $2,250 per month and has been employed since January 1. FICA Social Security tax
Elis [28]

Answer:

March 31

Dr. Payroll Tax Expense: 3071.25

Cr. FICA- Social security taxes payable:

1395

Cr. FICA- Medicare taxes payable:

326.25

Cr. SUTA-State unemployment taxes payable:

1215

Cr. FUTA- Federal unemployment taxes payable: 135

Explanation:

March 31

Dr. Payroll Tax Expense: 3071.25

Cr. FICA- Social security taxes payable:

(6.2%×$2,250) 1395

Cr. FICA- Medicare taxes payable:

(1.45%×$2,250) 326.25

Cr. SUTA-State unemployment taxes payable:

(5.4$×$2,250) 1215

Cr. FUTA- Federal unemployment taxes payable: (0.6%×$2,250) 135

3 0
3 years ago
The rate of return required by investors in the market for owning a bond is called the:_______
VashaNatasha [74]

The rate of return required by investors in the market for owning a bond is called the <u>Yield to </u><u>maturity</u>

A bond's coupon rate is the rate it pays each year, and yield is the return it makes. A bond's coupon is expressed as a percentage of its face value. Face value is simply the face value of the bond or the value of the bond as quoted by the issuer.

A bond's current yield is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.

The current yield is the annual rate of return on investment (interest or dividend) divided by the security's current price. This indicator looks at the current price of a bond rather than its face value.

Learn more about maturity here brainly.com/question/26376004

#SPJ4

6 0
2 years ago
Other questions:
  • On January 2, 2018, Ava Co. issued at face value $53,300 of 9% bonds convertible in total into 9,649 shares of Ava's common stoc
    10·2 answers
  • If you visit diamondsforever, you can design your own ring. This site, which is operated by Engaging Engagements, then allows yo
    9·1 answer
  • While it provides a more accurate assessment of an applicant's job-related personality characteristics, the ______ has been crit
    5·1 answer
  • Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for o
    14·1 answer
  • Aside from human user types, there are two other non-human user groups. Known as account types, ________________ are accounts im
    15·1 answer
  • Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research a
    7·1 answer
  • You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock
    8·1 answer
  • I rlly need answers quick guys! This isnt Business tho!
    10·1 answer
  • Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,
    10·1 answer
  • The following financial information is presented for three different companies. Determine the missing amounts.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!