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
IceJOKER [234]
3 years ago
8

The inflation rate over the past year was 3.8 percent. If an investment had a real return of 6.9 percent, what was the nominal r

eturn on the investment?
Business
1 answer:
Natalka [10]3 years ago
6 0

Answer:

Nominal rate of return= 10.96%

Explanation:

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money

<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  </em>

<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation. </em>

The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;

N = ( (1+R) × (1+F)) - 1

N- nominal rate, R-real rate, F- inflation

Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622

Nominal rate of return =  0.109622 × 100 = 10.96%

Nominal rate of return= 10.96%

You might be interested in
Coffee beans are an input in the production of coffee. Coffee in turn is a complement to pie. an increase in the price of coffee
AleksandrR [38]

An increase in the price of coffee beans can be expected to increase the demand for pie.

So, in the market if the price of coffee beans increases, quantity demanded for coffee will decrease. As, the coffee in turn is a complement to pie the consumers using coffee will now shift themselves to pie, unless the price decreases for coffee. Thus, the demand for pie is expected to increase now.

Several events could lead to such a change, an increase in  population , an increase in incomes, or an increase in the price likely to increase the quantity of coffee demanded at each price.

Hence, this represents the Law of Demand.

To learn more about the Law of Demand here:

brainly.com/question/10782448

#SPJ4

3 0
2 years ago
In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 19
uranmaximum [27]

Answer:

B) $1,132,895

Explanation:

If the CPI = 15.2 in 1931, and in 2012 it was = 229.6, then President Hoover was making a fortune = (229.6 / 15.2) x $75,000 = $1,132,895, and he was a terrible president, one of the worst ones in all history.

In 2012 when President Obama was in office, he made around $400,000 and he was a much better president.

6 0
3 years ago
For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both,
In-s [12.5K]
Answer 3........................
8 0
3 years ago
Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the c
otez555 [7]

Answer:

$635,000 and : 34%

Explanation:

Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 -  $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

Margin of safety = 10,000 - 6600 units

=3400 units

In dollars is equal to margin of safety in units x selling price

=3400 x 187

<u>=$635,000</u>

as a percent of expected sales.

=3400/10000 x 100

=0.34 x 10,000

=34%

4 0
2 years ago
Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary.
SIZIF [17.4K]

I will recommend she invest the $45,000 in Certificate of deposit or Money market account.

It is widely known that a traditional bank’s savings account does not provides significant interest rate for deposit unlike other account which are meant from pure investment at long term.

A certificate of deposit are issued by bank to customer promising them a certain interest rate on their deposit with them.

A money market is also an method of investing in short term market and guarantees high interest rate on deposit.

Therefore, I will recommend she invest the $45,000 in Certificate of deposit or Money market account.

Learn more about this here

<em>brainly.com/question/18050668</em>

3 0
2 years ago
Other questions:
  • In the context of evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to conve
    5·1 answer
  • Dan owns an autographed copy of a brittany spears cd that he values at $100. if he sells the cd at the garage sale he's planning
    7·1 answer
  • What High School did LeBron James go to?
    6·2 answers
  • The middle of supply chain information systems (SCIS) framework is which of the following?
    5·1 answer
  • Paci Restaurants accepts credit and debit cards as forms of payment. Assume Paci had $14, 000 of credit and debit card sales on
    10·1 answer
  • What is a national budget​
    8·1 answer
  • ________ are persons who act as catalysts and assume the responsibility for managing refinement activities.A) Early adoptersB) F
    11·1 answer
  • will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm wit
    10·1 answer
  • Prepare adjusting entries for the following transactions.
    6·1 answer
  • The continual process by which managers actively encourage, stimulate, and support employee commitment to the company, the compa
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!