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The real interest rate tells you how fast the purchasing power of your bank account rises over time.
<h3>What is meant by the real interest rate?</h3>
- When a borrower pays back a loan with interest, the lender obtains a gain in purchasing power that is expressed as a percentage.
- In the previous illustration, the lender made $8 on the $100 loan, or 8%.
<h3>What is real and nominal interest rate?</h3>
- The real rate of a bond or loan is determined by adjusting a real interest rate to account for the impacts of inflation.
- The interest rate before accounting for inflation is referred to as a nominal interest rate.
<h3>Why real interest rate is important?</h3>
- Real interest rates are the main concern of economists.
- Investors may be forced to take on greater risk or withdraw entirely depending on the real rate.
- Without ever taking a dollar, it can drain your savings.
- Every central bank in the world has it on their radar.
Learn more about real interest rate here:
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Correct/Complete Question:
The physical condition of the land and improvements being purchased are NOT guaranteed by either sellers or broker, except as specifically set forth in the purchase agreement. For this reason, brokers require their salespeople to powerfully advise all buyers:
A. of their right to have a personal and professional inspection of the property they are purchasing.
B. purchase errors and omissions insurance for the buyer.
C. to spend at least one night in the house before purchasing.
D. Sign the "safe harbor provision."
Answer:
A. of their right to have a personal and professional inspection of the property they are purchasing.
Explanation:
In the sale of property, either land or house, it is important for salespersons to strongly let buyers know that they have the right to personally and professionally have the property inspected.
This is to avoid a situation where the buyer pays for the property then comes back to say something or some part of the property isn't what it is.
So by inspecting the property personally and professionally, the broker and salesperson are absolved of any issue that might arise from inspection.
Cheers.
Answer:
Sunk cost
Explanation:
-Incremental cost is the total cost of producing an additional unit.
-Sunk cost is a cost that has already been paid and that it is not possible to get it back.
-Out-of-pocket cost is a cost that requires a direct payment in the actual period.
-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.
-Period cost is a cost that is not associated with the production of goods.
According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.
Answer: $15.50
Explanation:
From the question, we are informed that someone establish a straddle on Fincorp using September call and put options with a strike price of $80 and that the call premium is $7.00 and the put premium is $8.50.
The most that can be lose on this position will be the addition of the call premium and the put premium. This will be:
= $7.00 + $8.50
= $15.50
