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Diano4ka-milaya [45]
3 years ago
10

the nominal interest rate is 7 percent and the expected inflation rate is 4 percent. the real interest rate is

Business
1 answer:
Hoochie [10]3 years ago
6 0

Answer:

2.88%

Explanation:

According to the fisher equation :

(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)

(1.07) = (1.04) x (1 + real interest)

(1.07) / (1.04) = (1 + real interest)

1.028846

real interest rate = 2.88%

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In two years, you will receive the 1st payment from an irrevocable trust your grandparents set up. The trust is set up make paym
NikAS [45]

Answer:

$50,000

Explanation:

Note: There is an assumption that the payment is yearly payment & is received at the end of every year

Present Value of Perpetuity = Payment Receivable in 1st year/ (Discount rate - Growth rate)

Present Value of Perpetuity = 500/(2%-1%)

Present Value of Perpetuity = 500/0.01

Present Value of Perpetuity = $50,000

So, the present value of all the future trust payments is closest to $50,000

6 0
3 years ago
Stan, an air conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are u
vovangra [49]

Stan, an air conditioning and heating technician, files a suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock.Temp-Set's best defense is most likely Knowledgeable User.

<h3><u>Explanation:</u></h3>

Some of the products must be used under certain conditions that are mentioned to be safer. When all these instructions are known by the people the manufacturer need not to mention that under warning conditions. These are known to be the knowledgeable users.  

Some of the products usage is more commonly known by the users of those partticular products. They also know the adverse conditions when they are not used under the conditions that are desirable. In the given example, the temperature sets that are made by the technician is the Knowledgeable User since he knows everything about the working.  

6 0
3 years ago
Concord Corporation has several outdated computers that cost a total of $18000 and could be sold as scrap for $6000. They could
DanielleElmas [232]

Answer:

$18,000

Explanation:

Sunk costs refers to a cost that has been expended and cannot be recovered or recouped.

With regards to the above, $18,000 was expended concord by corporations to purchase computers hence cannot be recovered. Therefore, it is a sunk cost.

8 0
2 years ago
What is a strategy for reducing the risk of identity theft?
Pepsi [2]

Answer:

b

Explanation:

extra cards and id makes it easier for people to steal (pickpocket) and get into accounts and all of the others would make it easy

4 0
3 years ago
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