Answer:
the rate of inflation is 2%.
Step-by-step explanation:
given:
Nominal interest rate =3%
Real interest rate=1%
To Find:
Rate of inflation=?
Solution:
Nominal interest rate:
Nominal interest rate refers to the interest rate before taking inflation into account.
Inflation rate:
The inflation rate is the percent increase or decrease in prices during a specified period. It's usually over a month or a year.
Real interest rate:
A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.
Real interest rate ≈ nominal interest rate − inflation rate.
This can be re written as
inflation rate= Real interest rate - nominal interest rate
Substituting the values,
inflation interest = 1+3
inflation interest=4%
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The difference of five and negative 7.
<span><span>
1.
</span>Which becomes 5 – (-1) = 6. Such that 5 + 1 = 6.</span>
The total number of fruits available.
Three hundred apples
minus thirty oranges.
<span><span>1.
</span>300 – 30 = 270 fruits</span>
The room temperature of thirty degrees Celsius has risen to
fourty-five degrees Celsius. What is the difference of the final and initial temperatures?
<span><span>
1.
</span>45 – 30 = 15</span>
When the ball rose with an acceleration of 2 m/s2 what is
the difference between the ball’s acceleration and the gravitational force that
acted on it?
<span><span>
1.
</span>-10 - 2 = -12 </span>
The expected value of this policy to the insurance company is $285.00.
Using this formula
Policy expected value=Insurance policy charges-[(Probability × Claim)+(Probability × Claim)]
Let plug in the formula
Policy expected value=$1,300-{(.0041)($150,000)+(.08)($5,000)]
Policy expected value=$1,300-($615+$$400)
Policy expected value=$1,300-$1,015
Policy expected value=$285.00
Inconclusion the expected value of this policy to the insurance company is $285.00
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