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
andre [41]
3 years ago
9

Assume a nominal interest rate on one-year U.S. Treasury Bills of 2.60% and a real rate of interest of 1.00%. Using the Fisher E

ffect Equation, what is the approximate expected rate of inflation in the U.S. over the next year?
Business
1 answer:
kati45 [8]3 years ago
6 0

Answer:

1.58%

Explanation:

Fisher equation:

(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected rate of inflation)

1.026 = 1.01 x (1+expected rate of inflation_)

--> Expected rate of inflation = 1.58%

You might be interested in
Stellan Manufacturing is considering the following two investment​ proposals: Proposal X Proposal Y Investment $ 720 comma 000 $
vichka [17]

Answer:

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

Explanation:

Provided cost of Proposal Y = $512,000

Residual Value = $0

Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.

Useful life = 4 years

Estimated cash inflow per year = $110,000

Discount rate = 9%

Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years

Thus present value of future cash inflows = $110,000 X 3.240 = $356,400

Note: Net Present Value = Present Value of Cash Inflows - Present Value of  Cash Outflow = $356,400 - $512,000 = -$155,600

Final Answer

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

6 0
3 years ago
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cas
MAXImum [283]

Answer and Explanation:

The Preparation of the cash budget is shown below:-

PTO Co.

Cash budget

For the month ended Sept. 30

Particulars Amount

Beginning cash balance $41,000

Add: Cash receipts for sales $258,000

Total cash available $299,000

LesS:

Cash disbursement

Direct Material $97,200

($72,000 × 30%) + ($108,000 × 70%)

Direct labor $30,000

Other expenses $59,000

Accrued Taxes $10,800

Interest on bank loan $1,700

Total Cash disbursement $198,700

Ending cash balance $100,300

4 0
3 years ago
What are the various product line decision, and when do marketing managers make each of these decisions? What is the meaning of
Lana71 [14]

Answer:

They are something to do with car and lines in traffic

Explanation:

:))) Your welcome

5 0
3 years ago
The balance sheet is a financial statement that measures the flow of funds into and out of various accounts over time, while the
ValentinkaMS [17]

Answer:

The given statement is <u>False.</u>

A balance sheet is often described as a "snapshot of a company's financial condition.

7 0
3 years ago
If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise i
Gala2k [10]

Answer:

3%

Explanation:

Increase in money supply ($ billion) = Increase in reserves / Reserve ratio

Increase in money supply ($ billion) = 150 / 0.1

Increase in money supply ($ billion) = 1,500

Increase in price level = (Increase in money supply / 100) * 0.2

Increase in price level = (1,500/100) * 0.2

Increase in price level = 3%

8 0
3 years ago
Other questions:
  • Which of the following are fixed costs in the federal budget
    8·1 answer
  • For a perfectly competitive firm, the marginal cost curve is identical to the firm’s ________________
    11·1 answer
  • Leaders with a large span of control tend to display more consideration and use more personal approaches when influencing follow
    14·1 answer
  • The paper industry and brewery industry each emit 60 tons of particles into the air. It costs the paper industry $1,000 to remov
    5·1 answer
  • Which of the following statements is CORRECT?
    11·1 answer
  • If Jane Brown closes her account at the First National Bank and uses the money instead to open a money market mutual fund​ accou
    5·1 answer
  • Donald's home was recently destroyed by a fire. He made an insurance claim for $250,000. Who is responsible for paying him the $
    8·1 answer
  • PLEASE HELP ASAP::::
    15·1 answer
  • Explain how money market accounts differ from regular savings accounts.
    9·1 answer
  • Create a simple sketch showing what Hawkins and Crusoe could produce if the two men lived independently on different sides of th
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!