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hjlf
3 years ago
7

The CPI is 120 in year 1 and 150 in year 2. All inflation is anticipated. If Gringotts Bank charges an interest rate of 20.00 pe

rcent in year​ 2, the​ bank's real interest rate is nothing​%. ​(Round your response to two decimal places and include a minus sign if necessary.​)
Business
1 answer:
liq [111]3 years ago
3 0

Answer:

Gringotts Bank real interest rate = 20% - 25% = -5%

Explanation:

real interest rate = nominal interest rate - inflation rate

the inflation rate between year 1 and year 2 = [(CPI year 2 - CPI year 1) / CPI year 1] x 100 = [(150 - 120) / 120] x 100 = (30 / 120) x 100 = 0.25 x 100 = 25%

Gringotts Bank real interest rate = 20% - 25% = -5%

since the interest rate is negative, that means that Gringott Bank is actually losing money by lending it at 20% since the inflation rate is much higher.  

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madreJ [45]

Answer:

The correct option is D, Heirloom.

Explanation:

A garden Plant that has been passed down within a food family and is generally not commercially grown is called a Heirloom Product. Such garden plants are planted by the gardeners for their own and family use. Such plants are not sold commercially. Generally they are planted to be used within the house. Family members use such plants to make foods.

4 0
3 years ago
Write a statement that increments total by the value associated with amount . That is, add the value associated with amount to t
marishachu [46]

Answer:

total = total + amount

Explanation:

The statement that increments total by the value associated with amount i.e add the value associated with amount to that associated with total and assign the result to total is:

total = total + amount

4 0
3 years ago
The market value balance sheet for Cherry Pie Corp. reflects a cash of $22,000, fixed assets of $209,000, and equity of $231,000
Blizzard [7]

Answer:

The correct answer is D.

Explanation:

Equity = $231,000

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No. of shares repurchased = \frac{18,000}{46.2}

No. of shares repurchased = 390

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Revised equity = $231,000 - $18,000

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8 0
3 years ago
What is the act of working in exchange for an income.?
Neporo4naja [7]

Employment is the act of working in exchange for an income.

 

Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee.

3 0
3 years ago
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vaieri [72.5K]

Answer:

problems

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Any two of these

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Explanation:

pf

3 0
3 years ago
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