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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%

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It is easier for employees to develop positive customer/client relations if employees understand that each customer is
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7 0
3 years ago
Which of the following is true?a. It is possible for total utility to rise as marginal utility falls. b. Marginal utility is the
Serga [27]

Answer:

The correct answer is letter "D": A and C.

Explanation:

Utility is the satisfaction or joy an individual perceives by consuming a given good or service. Marginal utility is the satisfaction perceived by consuming one more unit of a good or receiving a service one more time. Total utility is the aggregate utility as a result of adding the number of goods or services consumed.

<em>When marginal utility starts falling, total utility could still be rising since even if the consumer is not enjoying the same way the consumption of a good the individual is still adding more units to the consumption. However, there will a point in which the consumption of the good will not represent any satisfaction to the individual not adding more units anymore, thus, total utility starts dropping.</em>

6 0
3 years ago
Gardial &amp; Son has an ROA of 11%, a 2% profit margin, and a return on equity equal to 17%. What is the company's total assets
bezimeni [28]

Answer:

Total assets turnover = 5.5

Equity multiplier = 1.55

Explanation:

The return on assets (ROA = 11%) is defined as the profit margin (2%) multiplied by the total assets turnover (TAT):

0.11=0.02*TAT\\TAT = 5.5

The return on equity (ROE = 17%) is defined as the product of the return on assets (ROA = 11%) by the equity multiplier (EM):

0.17=0.11*EM\\EM=1.55

The company's total assets turnover is 5.5

The firm's equity multiplier is 1.55

4 0
3 years ago
XYZ Co. had 500 calculators, purchased at $3.5 per unit, on hand on 11/1/2019. Purchases and sales during the month of November
Wittaler [7]

Answer:

Value of ending inventory at 11/30/2019 using LIFO is $1,950

Explanation:

The calculators sold on 11/8 were taken from  purchases of 11/21,200 units and purchases of 11/13,150 units,thereby leaving 150 units of calculators purchased on 11/13 in inventory.

However,the sale of 100 calculators on 11/28 were picked from the balance of 150 units left from stock of 11/13 thereby leaving 50 units purchased at $4 each and the opening inventory in closing inventory.

The computation of closing inventory value:

11/13/2019 50 calculators at $4 = $200

11/1/2019   500 calculators at $3.5=$1,750

Value of closing inventory                  $1,950

6 0
3 years ago
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