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Elina [12.6K]
4 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]4 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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You were recently hired as the head of the PMO of a company which is transitioning into a projectized organizational structure to implement projects using the waterfall approach. You would like to develop a project control process for measuring and evaluating project performance.

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7 0
2 years ago
In 2013, Emma purchased an automobile, which she uses for both business and personal purposes. Although Emma does not keep recor
yuradex [85]

Answer:

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5 0
3 years ago
Suppose that Greece and Sweden both produce oil and stained glass. Greece's opportunity cost of producing a pane of stained glas
Wewaii [24]

Answer: Greece; Sweden

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country or firm as compared to the other country or firm.  

Greece's opportunity cost of producing a pane of stained glass = 4 barrels of oil

Sweden's opportunity cost of producing a pane of stained glass = 8 barrels of oil

Therefore, opportunity cost of producing a pane of stained glass is lower in Greece as compared to the Sweden.

Hence, Greece has a comparative advantage in producing stained glass.

Greece's opportunity cost of producing a barrel of oil = \frac{1}{4}

                                                                                          = 0.25 pane of stained glass

Sweden's opportunity cost of producing a barrel of oil = \frac{1}{8}

                                                                                          = 0.125 pane of Stained glass

Therefore, opportunity cost of producing a barrel of oil is lower in Sweden as compared to the Greece.

Hence, Sweden has a comparative advantage in producing Oil.

4 0
3 years ago
It is was that 5% product of a lot are defective, if 8 products are selected randomly, what is the probability of getting lessTh
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6 0
4 years ago
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Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The sel
Amiraneli [1.4K]

Answer:

A. 40,000 units

Explanation:

To break even, the total cost must be equal to the total revenue. The cost elements are the fixed and variable cost. The variable cost is dependent on the level of activities.

Let the number of units required to breakeven be g

cost = sale

30g + 240,000 = 36g

36g - 30g = 240000

6g = 240000

g = 40000

The company must produce and sell 40000 units to break even.

3 0
4 years ago
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