The interest rate is 7%.
<u>Solution:</u>
The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.
To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.
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I would say D, you don’t need a million dollar death benefit if you have no one to claim it.
Answer:
D. The interest income will be greater in the third year than in the first year.
In the process of straight rebuys, the buyer has this tendency to be the only member of the buying centre that is involved in the operation. In addition to that, the method is also used to describe the when a consumer would have to buy again the same product without referring to the information attached to it.
Answer: d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date
Explanation:
Efficiency is measurable and has to do with the ability to achieve a goal or get a result that's desired and avoid wastage of efforts or resources.
With regards to the explanation above, the statement that relate specifically to your efficiency is asking the level adviser to review ones progress in order to show that one is on track.
This shows that the person wants to achieve the goal of graduation and is putting all of his efforts towards that.