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svlad2 [7]
3 years ago
11

20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What w

as the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Business
1 answer:
Stella [2.4K]3 years ago
5 0

Answer: 3%

Explanation:

To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:

= [(126-120)/120] × 100

= 6/120 × 100

= 5%

Real interest rate will now be:

= Nominal Rate - Inflation Rate

= 8% - 5%

= 3%

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A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There a
LenaWriter [7]

Answer:

Bond,treasury

Explanation:

A bond refers to the contract between borrower and lender stipulating that the borrower must pay periodic interests and principal on specified dates .

The interest is also known as coupon payment has fixed  rate usually  quoted in the bond agreement which could be paid annually or semi-annually to te lenders.

Treasury refers to the bond issued by the national government such as the U.S government and carries a lower rate of return as the risk attached too is low ,hence lower risk brings about lower return since the government is not likely to default in discharging its obligations

8 0
3 years ago
All of the following are economic indicators EXCEPT
mamaluj [8]
The correct option is C, RETAIL SALES.
The income taxes, the GDP and the stock market can be used to gauge the economic status of a particular country, they are economic tools which are used to monitor the economy. 
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8 0
3 years ago
Read 2 more answers
What is the value to a start up business of using primary marketing research
KengaRu [80]

Answer:

By conducting primary research using unbiased panellists, entrepreneurs can gain the latest information about the consumer's wants and needs, allowing them to adapt their product or service accordingly and gain a competitive advantage.

Explanation:

7 0
2 years ago
_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel rela
katrin2010 [14]
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8 0
4 years ago
Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail
nikklg [1K]

Answer:

a. 575 units

b. 107.83 orders

c.  3.38 days

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

where,

Annual demand = 62,000 disk

Ordering cost = $16

Carrying cost = $0.25 × 24% = $6

Now put these values to the above formula  

So, the value would equal to

= \sqrt{\frac{2\times \text{62,000}\times \text{\$16}}{\text{\$6}}}

= 575 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= 62,000 ÷ 575 units

= 107.83 orders

c. The frequently order would be

= Total number of days in a year ÷ number of orders in a year

= 365 days ÷ 107.83 orders

= 3.38 days

5 0
4 years ago
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