Here is the answer choice to the question
a. the real rate of interest on your loan is 14%.
b. the real rate of interest on your loan was previously 10% and is now 35%.
c. the real rate of interest on your loan is now –2%.
d. you will pay the lender back exactly $9,500.
e. you will pay the lender back exactly $10,700
Answer:
C. the real interest rate on your loan is now -2%
Explanation:
The real interest rate of can be gotten by subtracting the nominal interest rate from the inflation rate from nominal interest rate
Inflation rate = 7%
Nominal interest rate= 5%
= 5 percent - 7 percent
= -2%
The real interest rate can be defined as the rate of interest an investor, saver or lender is going to receive after they have allowed for inflation.
False.
Asset are things you own, Debts are things you owe.
Hope that Helps :3
If the government increases expenditure without raising taxes, this will <span>cause the interest rate to increase, thereby, reducing private investment and crowding out the private sector and </span>cause a decrease in the domestic exchange rate which will increase exports and decrease imports. Expenditures is increasing the amount of money and money available to be spent. In this case, the government is increasing the amount of money that tis available to be spent but they aren't imposing taxes on consumers with the increase. <span>
</span>
Answer:
C. necessitates determining if the reporting unit itself is impaired after calculating implied goodwill.
D. may result in an impairment charge defined as the difference between the goodwill reflected for the reporting unit in the consolidated balance sheet and the reporting unit’s implied goodwill.
Answer:
a. $4,322.74
b. Yes
Explanation:
a. The computation of December futures is shown below:-
December futures = June futures × (1 + 1.9%)
= $1490.60 × (1 + 1.9%)
= $1490.60 × 2.9
%
= $4,322.74
Since the current interest rate is 3.8% and the contract is expired in 6 months so we half the interest rate i.e 1.9%
b. Yes, there is an arbitration opportunity here due to the difference between the future price of December. The real futures price for December is $1,500 and the potential price for December's parity relationship is $4,322.74
