1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elina [12.6K]
3 years ago
15

If investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate ove

r the year is: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Business
1 answer:
serg [7]3 years ago
5 0

Answer:

The question is missing the below details:

inflation rate of Zero % = real rate of 6%

inflation rate of 2.8% = real rate of 3.2%

inflation rate of 5.8% = real rate of 0.2%

Explanation:

The interest rate consists of both the real rate of return and the inflation rate- return meant to compensate investors the prevalent rate of return in the economy.

Nominal rate=real rate+Inflation rate

real rate=nominal rate-inflation rate

at inflation rate of 0

real rate =6%-0

real rate -6%

at inflation rate 2.8%

real rate=6%-2.8%

real rate=3.2%

at inflation rate of 5.8%

real rate=6%-5.8%

real rate=0.2%

You might be interested in
A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popu
s344n2d4d5 [400]

Answer:

  • Social

Explanation:

PESTLE analysis is a tool to identify those external factors which influences organization.

P: Political Factors influencing organization's performance.

E: Economical Factors creating hurdles in the way of the organizations.

S: Social Factors account for changed behavior of consumers towards organization.

T: Technological Factors playing it's role in influencing organizational performance.

L: Legal Factors accounting for legal barriers for the organizations.

E: Environmental Factors affecting companies but no one pays attention to it.

  • Salsa's increased popularity is represented by Social Factor: As belief is the most vital element which has effect on consumers decision making a company's growth or loss can be accounted for it. Not just belief the demographics and the attitude of people towards general issues can play their roles as well.
3 0
3 years ago
A registered investment company whose share price fluctuates independently of its net asset value is most likely
bazaltina [42]

Answer:

Closed-End Fund

Explanation:

Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.

5 0
3 years ago
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The
lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

6 0
2 years ago
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal
Korvikt [17]

Answer:

Results are below.

Explanation:

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= 0.2*33 + 0.5*22 + 0.3*41

Weighted average contribution margin= $29.9

Break-even point (units)= 4,544,800 / 29.9

Break-even point (units)= 152,000 units

<u>Now, for each product:</u>

<u></u>

Lawnmowers= 0.2*152,000=30,400

Weed-trimmers= 0.5*152,000= 76,000

Chainsaws= 0.3*152,000= 45,600

8 0
3 years ago
School-aged children are regularly asked to fundraise for their school. Typically, they are required to sell a minimum amount. T
ella [17]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Ceiling effect.

b) Floor Effect.

And the correct answer is B: Floor effect.

Explanation:

To begin with, in the field of statistics the term known as "Floor Effect" refers to the situation in where the gathering of data regarding an statistic instrument about a subject turns out to have a lower limit to the data values it can reliably specify. And the floor is understood to be as that lower limit in the chart or graphic created in the study of the subject. Moreover, this term is also used in the field of psychology when test are done to subjects in study as well.

5 0
2 years ago
Other questions:
  • The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year,
    14·1 answer
  • Start is to begin, employ is to -----.
    9·2 answers
  • A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this r
    11·1 answer
  • Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests
    12·1 answer
  • At carbon fine inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. a compensati
    9·1 answer
  • Mixed economies can evolve when societies with different kinds of economies interact. True or False
    11·1 answer
  • Martinez, Inc. acquired a patent on January 1, 2017 for $42,000 cash. The patent was estimated to have a useful life of 10 years
    14·1 answer
  • A company has a total amount of 15 hours for one specific resource. The upper limit of this resource is 18 (the right-hand side
    11·1 answer
  • Need a contact no need to cancel
    9·1 answer
  • Is the value of all goods in an economy using current prices during the year that they were produced
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!