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
pogonyaev
3 years ago
10

Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula

.
Business
1 answer:
Citrus2011 [14]3 years ago
7 0

Answer:

4.89%

Explanation:

Real rate of return = 3.37%

Inflation rate = 1.47%

The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

= [ (1 + 0.0337) x (1 + 0.0147) ] - 1

= (1.0337 * 1.0147) - 1

= 1.04889539 - 1

= 0.04889539

= 4.889539%

= 4.89% approx.

You might be interested in
Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Wh
jek_recluse [69]

Answer:

B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.

Explanation:

Given

Trading price = $20

Exercise price of call option = $20

Call option price = $1.50

Price increment = 10% to $22

It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.

An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.

Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.

Moving to the percentage increase;

This will be larger than 10%.

This is because when stock price increases by 10%, the value of the option will increase by more than 10%.

8 0
2 years ago
James is a sales agent who is sponsored by best realty, and he is a member of the a-1 team. what must be done to ensure that jam
gavmur [86]

His broker must register the team name that complies with the new regulations with TREC before he may use it in advertising.

<h3>What is a team name?</h3>
  • The term "team name" refers to a name that is employed by one or more license holders that are sponsored by or connected to the same broker but are not the broker's actual name or an assumed business name.
  • Team or group must be at the end of team names.
  • Terms in team names that suggest the club is providing brokerage services independently of the broker are prohibited.
  • Brokerage, corporation, and associates are a some of the forbidden words.
  • As long as the team name ends with the words team or group, the phrases realty or real estate are permissible in the team name.
<h3>What is TREC?</h3>
  • The governmental entity in charge of overseeing real estate practices in the state of Texas is called the Texas Real Estate Commission.
  • The organization's main office is located in Austin at 1700 North Congress.
  • TREC is made up of nine people who the governor appoints with the support of the Texas Senate.

Learn more about TREC here:

brainly.com/question/4721435

#SPJ4

3 0
1 year ago
Miller owns a personal residence with a fair market value of $380,900 and an outstanding first mortgage of $304,720, which was u
Romashka [77]

Answer:

$304,720

Explanation:

According to the IRS, qualified principal residence indebtedness may include:

1)  Debt incurred in order to purchase, build or improve your house or main residence, and the debt is secured by the house or principal residence (mortgage).

Or

2) Any house debt in (1) that is refinanced in order to improve, build or purchase something of your house or principal residence, e.g. you refinance your mortgage in order to build a swimming pool. The loan balance cannot exceed the original mortgage.

A fishing boat is not considered a home improvement, so the equity loan is not considered qualified residence indebtedness.

6 0
3 years ago
Phishing is looking for and reporting online scams.<br><br> True or <br> False
MAXImum [283]
False. Phishing is usually considered emails that are sent that look genuine but are actually from scammers trying to obtain personal or financial information. 
4 0
3 years ago
Read 2 more answers
Manta Ray Company manufactures diving masks with a variable cost of $31. The masks sell for $40. Budgeted fixed manufacturing ov
riadik2000 [5.3K]

Answer:

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

Explanation:

If we have 80,000 units produced and sold then the income under both methods will be the same.

Manta Ray Company

Income Statement Variable Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Contribution Margin  $ 720,000

Less Fixed Costs $  $712,800

Gross Profit $ 7200

Manta Ray Company

Income Statement Absorption Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Fixed Costs $  $712,800

Gross Profit $ 7200

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

If there is an increase in the inventory units ( ie. production is less than the Sales) the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease  ( ie. production is more than the Sales)  the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

8 0
3 years ago
Other questions:
  • Before polling students in the Scion of Business, a researcher divides all the current students into groups based on their class
    9·1 answer
  • Label demand as elastic, unit elastic, or inelastic for each scenario. Use the midpoint method when applicable to calculate the
    8·1 answer
  • Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one
    15·1 answer
  • The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt f
    5·1 answer
  • You are offered two jobs, one in Chicago paying $67,000 and one in Dallas paying $58,000. The price index in Chicago is 110.8, a
    9·1 answer
  • The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai
    7·1 answer
  • First-mover disadvantages refer to:__________
    8·2 answers
  • You run a small auto service shop. Your fixed expenses per week are $1,000 and your average customer invoice is $500 with an ass
    8·1 answer
  • Balance Sheet October 31 Assets Cash $ 36,500 Accounts receivable 87,000 Merchandise inventory 195,300 Property, plant and equip
    10·1 answer
  • Alex has accepted an IT position at a new company, and will be leaving her current job in the IT department of a large company.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!