Answer:
$6268.21
Explanation:
Future value = $8000
Interest(r) = 5%
Period (n)= 5 years
How much need to deposit?
Find the Present value:
PV = FV / (1+r)n
= 8000 / (1.05)5
= 8000 / 1.27628156
Present Value / Amount need to deposi today = $6268.21 approx
Making a line for ur chart i'm guessing
The real interest rate tells you how fast the purchasing power of your bank account rises over time.
<h3>What is meant by the real interest rate?</h3>
- When a borrower pays back a loan with interest, the lender obtains a gain in purchasing power that is expressed as a percentage.
- In the previous illustration, the lender made $8 on the $100 loan, or 8%.
<h3>What is real and nominal interest rate?</h3>
- The real rate of a bond or loan is determined by adjusting a real interest rate to account for the impacts of inflation.
- The interest rate before accounting for inflation is referred to as a nominal interest rate.
<h3>Why real interest rate is important?</h3>
- Real interest rates are the main concern of economists.
- Investors may be forced to take on greater risk or withdraw entirely depending on the real rate.
- Without ever taking a dollar, it can drain your savings.
- Every central bank in the world has it on their radar.
Learn more about real interest rate here:
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Answer:
C. The situation involving the service establishment has a probability 3.11 percentage points higher than the situation involving the retail establishment.