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DerKrebs [107]
3 years ago
13

If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact

real rate of interest
Business
1 answer:
s2008m [1.1K]3 years ago
6 0

Answer:

the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%

the exact real interest rate is calculated using the following formula:

(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)

(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)

1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133

real interest rate = 1.05133 - 1 = 0.05133 = 5.13%

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Which of the following statements about economic growth is accurate? The world’s sustained economic growth has only been occurri
irina1246 [14]

Answer:

<u>The world's sustained economic growth has only been occurring over the last 300 to 400 years.</u>

<u>Explanation:</u>

It is more accurate to say that sustained economic growth occurred over the last 300 to 400 years by considering when economic data became available.

Also, we need to bear in mind that a sustained economic growth implies a measurable period of economic expansion (growth).

6 0
3 years ago
The following expenditures relating to plant assets were made by Adam Company during the first 2 months of 2020.
dem82 [27]

Explanation:

a.)

In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.

Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.

the cash equivalent is the same as the fair market value of the assets that were given or received..

b )

the account title that expenditure should be debited

1. 5000 paid for land

2. 200 paid is for factory machine equipment

3. 850 paid for delivery truck is for equipment

4. 17500 paid for parking lot is for land improvement

5. 250 paid for companies name to be printed on truck is equipment

6. 8000 paid for installation is for equipment

7. 900 paid for insurance policy on truck is prepaid insurance

8. 75 paid as license fee is for license insurance

8 0
3 years ago
Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
Lynna [10]

Answer:

a. 50%

Explanation:

Model P-4 requires 30 minutes of machine time.

A machine hour consists of 60 minutes

Calculating the machine time of Model P-4 in terms of percent of machine hour:

= (Model P-4 Machine time/Machine Hour)*100

= (30/60)*100

= 0.5 * 100

=50%

So, the percent of Model P-4 machine time in terms of a machine hour is 50%.

6 0
3 years ago
The hours worked, and how it might interfere with your other priorities, can be factors when choosing a job.
Alex Ar [27]

It is TRUE because when you're looking at these factors you think of flexibility and whether or not you should choose a job. If your a mom you probably wouldn't choose a job where you had to work on weekends.



7 0
3 years ago
A subsidiary has previously unreported brand names valued at $50 million at the date of acquisition. The brand names have an ind
Damm [24]

Answer:

$38 million.

Explanation:

From the question, we are given the following data or information;

A subsidiary has previously unreported brand names valued = $50 million at the date of acquisition.

Impairment testing reveals that the brand names were impaired by $5 million in the first year.

Impairment testing reveals that the brand names were impaired by $7 million in the second year.

Therefore, Eliminating entry (E) will include a(n):

=> $(50 - 5 - 7) million = $38 million.

4 0
3 years ago
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