$25 well i just divided 1.2 million by 48,000 and got 25.
Answer:
D
Step-by-step explanation:
because I know it is
why do I have to have 20 characters
Answer:
Interest earned= $200
Step-by-step explanation:
Giving the following information:
Initial investment= $20,000
Interest rate= 3%
Inflation rate= 2%
First, we need to calculate the real interest rate. <u>The inflation rate decreases the value of money through time. We need to deduct from the interest rate, the inflation rate.</u>
Real interest rate= 0.03 - 0.02= 0.01
<u>Now, we can calculate the interest earned in year 1:</u>
Interest earned= PV*(1+i)^n - PV
Interest earned= 20,000*(1.01^1) - 20,000
Interest earned= $200
2.8 is the andwer because when you divide 8.40 divide 3 it is equal to 2.8
