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Talja [164]
4 years ago
7

In your own words, explain the difference between the nominal interest rate and real interest rate.

Business
1 answer:
puteri [66]4 years ago
5 0

Answer:

The nominal interest rate is the quoted interest rate, while the real interest rate is defined as the nominal interest rate minus the expected rate of inflation.

Another common definition is that a real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor. A nominal interest rate refers to the interest rate before taking inflation into account. The real interest rate is approximately equal to the nominal interest rate minus the expected rate of inflation.

(please put in own words)

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How much do I need to retire? Here are your assumptions. You are 30. You will retire when you are 65. You want $40,000 a year wh
Fynjy0 [20]

Answer:

The amount to be saved at the age of 65 is $1940755.74

Explanation:

To calculate the amount needed at 65 including inflation = 40000 * 1.0336 = 115931.13

Present Value of Growing Annuity = PMT / (r-g) [ 1 - {(1+g)/(1+r)}n ]

= 115931.13 / (0.045 - 0.03) [ 1 - (1.03/1.045)20 ]

= 7728742.2 * 0.2511089

= 1940755.74

3 0
4 years ago
Is the primary focus of marketing today on selling and advertising?
Lilit [14]
Hope this helps

The primary focus of the Marketing Research Analyst is to execute primary market research projects, both qualitative and quantitative, and provide insights to our Markets & Products and Marketing teams that help develop, position and launch new/existing programs and marketthe Capella brand.
5 0
4 years ago
Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
gizmo_the_mogwai [7]

Answer:

Centralize decision making

Explanation:

From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.

Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.

5 0
3 years ago
What is the difference between hazard insurance and homeowners insurance
MariettaO [177]

Answer:

The difference between the two is that Hazard insurance can cover you and or protect you against "structural damage caused by natural disasters".

Meanwhile Homeowners insurance is "a financial protection against theft"...

So, long story short,

Hazard insurance=protection from natural disasters (structural damage)

Hazard insurance=protection from natural disasters (structural damage)Homeowners insurance=protection against theft and damage to your home and belongings

I hope this helped!!

6 0
3 years ago
An investor sold mjs stock, a stock not currently owned in her portfolio. this is:______.
belka [17]

An investor has sold MJS stock, a stock not currently owned in her portfolio--------Bearish

What Is a Portfolio?

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

What is a portfolio for a company?

The portfolio is a collection of the products, services and achievements of the company. The goal of a company portfolio is to create a presence of the business on the market, attract more customers and to show how the business differs from its direct competitors on the market.

What does bearish mean trading?

A bear is an investor who is pessimistic about the markets and expects prices to decline in the near- to medium-term. A bearish investor may take short positions in the market to profit off of declining prices. Often, bears are contrarian investors, and over the long-run bullish investors tend to prevail.

Learn more about bearish:

brainly.com/question/14078353

#SPJ4

8 0
2 years ago
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