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Sedaia [141]
3 years ago
15

You deposit $2,000 in a savings account and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to

204. In this case, the nominal interest rate is _____ percent and the real interest rate is _____ percent.
Business
1 answer:
qaws [65]3 years ago
5 0

Answer:

nominal interest rate = 5%

real interest rate = 3%

Explanation:

given data

deposit previous = $2,000

deposit present = $2,100

CPI consumer price index rises =  200 to 204

to find out

nominal interest rate and real interest rate

solution

we get here first nominal interest rate that is express as

nominal interest rate = ( deposit present - deposit previous ) ÷ deposit previous × 100    ..........................1

put here value we get

nominal interest rate = \frac{2100-2000}{2000}  × 100

nominal interest rate = 5%

and

now we get here inflation rate that is

inflation rate = ( CPI present - CPI previous ) ÷ CPI previous  × 100    .............2

inflation rate = \frac{204-200}{200}  × 100

inflation rate = 2%

and

real interest rate will be as

real interest rate = nominal interest rate - inflation rate    .................3

real interest rate = 5% - 2%

real interest rate = 3%

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If the consumption function is defined as C = 5,500 + 0.9Y, what is the
Nimfa-mama [501]

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒  C = 5,500 + 0.9Y

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒  C=5,500+0.9(0)

⇒      =5,500+0

⇒      =5,500 (%)

8 0
3 years ago
Company X had net income of $200,000 in the year 2016. At the beginning of 2016, there were 500,000 shares of outstanding common
EleoNora [17]

Answer:

Basic earning per share $0.21 per share

Explanation:

Basic Earning per share = ( Net Income - Preferred stock dividend ) / Weighted Average outstanding shares

Basic Earning per share = ( $200,000 - $50,000 ) / 700,000

Basic Earning per share = $150,000 / 700,000

Basic Earning per share = $0.2143 / share

Weighted average Outstanding shares = 500,000 + 200,000

Weighted average Outstanding shares = 700,000 shares

5 0
3 years ago
What is the best online marketing service provider around the world?
SIZIF [17.4K]

Answer:

Let me name a few...

Explanation:

1.Digital Marketing Agencies in USA

2.Digital Marketing Agencies in UK

3.Digital Marketing Agencies in Australia

4.Digital Marketing Agencies in Canada

5.Digital Marketing Agencies in Netherlands

6.Digital Marketing Agencies in India

hope this helped :)

3 0
3 years ago
The following data pertain to an investment proposal: Required investment $75,000 Annual cash savings $18,000 Projected life of
ehidna [41]

Answer:

Explanation:

Using a financial calculator, input the following using CF function;

Initial Investment ; CF0 = -75,000

Yr1 cashflow ; C01 = 18,000

Yr2 cashflow ; C02 = 18,000

Yr3 cashflow ; C03 = 18,000

Yr4 cashflow ; C04= 18,000

Yr5 cashflow ; C05 = 18,000

Yr6 cashflow ; C06 = 18,000

Yr7 cashflow ; C07 = 18,000

Yr8 cashflow ; C08 = 18,000 +4,000 = 22,000

Required rate of return = 16%

then compute Net present value by keying in NPV, CPT = $4,404.74

5 0
3 years ago
Describe some of the possible problems a retailer could experience when attempting to sell online internationally.
Bogdan [553]

Answer:

In today’s digital market space consumers and businesses interact, sell, and buy beyond their local borders. With greater access to foreign markets, many U.S companies are looking to expand overseas and to sell internationally.

Global retail sales, including both in-store and online purchases, surpassed $22 trillion in 2014, according to recent figures from eMarketer. The marketing research firm also predicts a 5.5 % increase in overall international retail sales to $28.3 trillion by 2018.

Explanation:

hope <em>it </em><em>helps</em>

7 0
2 years ago
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