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NISA [10]
3 years ago
8

Suppose the real rate is 2.9 percent and the inflation rate is 4.5 percent. What rate would you expect to see on a Treasury bill

? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
nekit [7.7K]3 years ago
5 0

Answer:

using fisher formula: 7.53%

simple-method: 7.4%

Explanation:

the treasury bill will be a risk-free rate.

we will add the inflation premium to the real rate and get the nominal rate of the T-bill:

2.9 free-risk + 4.5 inflation premium =  7.4%

we could also solve using fisher formula for a more precise value:

\frac{1+r_n}{1+\pi } =1+r_r\\Where:\\r_n = nominal\\r_r = real-rate\\\pi = inflation

\frac{1+r_n}{1+0.045 } =1+0.029

rn = 1.029 x 1.045 -1 = 0.075305‬ = 7.53%

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Answer and Explanation:

The Preparation of bank reconciliation for Cougar Corp. as of December 31 is shown below:-

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<u>Particulars                                                Amount</u>

Bank balance Dec 31                            $24,575

Add: Deposit in transit                            $2,500

Less:

Outstanding checks #302          ($180)

Outstanding checks #303          ($95)

Outstanding checks #304          ($25)     ($300)

Bank balance adjusted                             $26,775

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Add: Interest income                   $21            $1,721

Less: Posting error

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Less: NSF check                            $500     $1,400

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8 0
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Answer:

Mark me Brainliest

Explanation:

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here is your answer if you like my answer please follow

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Answer:

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