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xz_007 [3.2K]
3 years ago
13

Suppose that the nominal interest rate in Japan is only 5.0 percent, while the comparable rate in the United States is 7.0 perce

nt. Japan's rate of inflation is 2.0 percent while the U.S inflation rate is 6.0 percent. Which economy has the higher real interest rate?
Business
1 answer:
Eduardwww [97]3 years ago
4 0

Answer: Japan has the higher real interest rate.

Explanation:

Japan:

Nominal interest rate = 5%

Inflation rate = 2%

Real interest rate = Nominal interest rate - Inflation rate

= 5 - 2

= 3%

United States:

Nominal interest rate = 7%

Inflation rate = 6%

Real interest rate = Nominal interest rate - Inflation rate

= 7 - 6

= 1%

∴ Japan has the higher real interest rate.

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Answer:

Law 2

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8 0
3 years ago
Investment methods, such as net present value and internal rate of return, ________
Likurg_2 [28]

Investment methods, such as net present value and internal rate of return,<u> </u>and<u> </u><u>Net present value</u><u> (NPV)</u>.

Net present value is the distinction between the prevailing fee of cash inflows and the prevailing fee of coin outflows over a time period. NPV is utilized in capital budgeting and funding making plans to analyze the profitability of a projected investment or task.

Net present value is the present fee of the coins flows at the specified rate of going back of your challenge in comparison for your preliminary funding,” says Knight. In sensible terms, it is a technique of calculating your go-back on funding, or ROI, for a venture or expenditure.

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7 0
1 year ago
You want to go the Six Flags amusement park. The ticket price to enter and enjoy the rides in Six Flags is $65. You live in Rich
Lyrx [107]

Answer:

Results are below.

Explanation:

<u>The opportunity cost is the amount of money that you won't earn when choosing one option over another. </u>In this case, one option makes you expend money and the other earn money.

Opportunity cost= 12*4 + 25

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4 0
2 years ago
You’re a broker writing an mls policy for your firm. which would you likely want to include?
Svetradugi [14.3K]

You’re a broker writing an MLS policy for your firm.  When and if listing data should be submitted to you for approval, want to include it.

Some listing services offer more exposure to resellers and more options for agents to represent buyers. In return, both brokers receive a sales commission.MLS regulations permit MLS data to be made available to MLS on additional Her websites unless otherwise directed by MLS's administrator.

MLS enables agents and brokers within a particular market to exchange information about real estate listings. It's useful for home sellers because it helps expose properties to a wider audience.

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5 0
1 year ago
The treasurer of a major U.S. firm has $36 million to invest for three months. The interest rate in the United States is .24 per
Hunter-Best [27]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
8 0
3 years ago
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