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vekshin1
3 years ago
12

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money

, both she and Harry expect an inflation rate of 6%. 1st attempt Part 1 (0.3 point)See Hint The expected real interest rate on the loan is %. Part 2 (0.3 point)See Hint Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%. The actual real interest rate on
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money, both she and Harry expect an inflation rate of 6%. Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%.

Real rate= nominal rate - inflation rate

At the beginning of the loan, the expected real rate is:

Real rate= 9 - 6= 3%

The actual rate is:

Real rate= 9 - 7= 2%

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Answer:

D) visibly punish unethical acts

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Ethics is the act of knowing what ia right and doing same. That is a good ethical act.

The ethical culture practised by Pam's company is to visibly punish unethical acts. This entails punishing any unethical act appropriately before others to see it.

This approach is really good because it will make others to sit up bearing in mind that they will get same punishment without hesitation if they err.

Pam's organization firing the three managers caught using the company's resources to fund their personal lifestyle pointed towards applying visible punishment for unethical acts.

7 0
3 years ago
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Star software systems and henry orally agree for henry to write special accounting software. this software usually takes three y
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There are 6 requirements for a verbal contract:

An offer. -- they had this

An acceptance. -- the contract was accepted

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Consideration. if there were discussions of payment, then yes this is a legally enforceable contract.

4 0
3 years ago
"Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvant
prohojiy [21]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is the term which occurs or happen when the tension arises among the attitudes or beliefs of the person and the decision that contradicts with those pre- existing thinking modes.

In short, it means that it occurs when a person select among the two equally unappealing or equally attractive options.

So, in this case, Bill thinks that he had received the best deal for the car, but after purchasing, he noticed the disadvantages of the car as he learned regarding the new cars. Therefore, he is experiencing the cognitive dissonance.

6 0
3 years ago
Jill wants to start her own business, but knows little about how to set up an accounting system or interpret financial informati
kotegsom [21]

Answer:

Explanation:

. You can hire someone to keep your books but, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions and also for you to be able to know if someone is committing fraud. A basic knowledge will assist you in all this.

It is virtually impossible to smoothly run a business without being able to read, understand, and analyze accounting reports and financial statements

8 0
3 years ago
You have a ​$109 comma 000 portfolio comprising 10 stocks. You trade each stock five times this year and each time you​ trade, y
motikmotik

Answer:

Return will be 1.3 % lower

Explanation:

We have given that you have a $109000 portfolio which contain 10 stocks

So number of stocks = 10

Number of times traded each stock = 5

Commission and spread pay = $30

So total expenditure = number of stocks ×  number of times × commission and spread per trade = 10×5×30 = $1500

So in percentage =\frac{1500}{109000}=0.013=1.3 %

So return will be 1.3 % lower    

7 0
3 years ago
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