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Mumz [18]
3 years ago
12

2.5 If the nominal rate of interest is 4.25 percent and the expected rate of inflation is 1.75 percent, what is the real rate of

interest?
Business
1 answer:
Burka [1]3 years ago
3 0

Answer:

2.5

Explanation:

Real interest rate is the interest rate that has been adjusted for the effect inflation.

Nominal interest rate hasn't been adjusted for the effects of inflation. It is the one more popularly quoted .

Inflation is the rise in general price level.

Real interest rate = nominal interest rate - expected inflation rate

4.25 - 1.75 = 2.5

I hope my answer helps you

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An employer will do a 50% match on your investment to a 401k retirement plan. If you decide to contribute a monthly amount of $2
PtichkaEL [24]

Answer:

There will be $92,635.42 in the account after 15 years.

Explanation:

Missing question <em>"The interest rate is fixed at 2.05%"</em>

As the employer does a 50% match on the employee’s investment, the monthly contribution to the retirement plan will be = 2 * $220 = $ 440.

The future value (F) of an annuity is given by F = (P/r)[(1+r)n-1]

P is the periodic payment

r is the rate per period

n is the number of periods.

P = 440, r = 2.05/1200 and n = 15*12 = 180.

F = (440*1200/2.05)[ (1+2.05/1200)180 -1]

F = (528000/2.05)*0.359664042

F = 92635.4215493

F = $92635.42

Thus, there will be $92,635.42 in the account after 15 years.

6 0
3 years ago
When common stock is issued by a corporation for a cash price above par value, the excess of the cash proceeds over the par valu
shutvik [7]

Answer: d. Total contributed capital on the balance sheet

Explanation:

When Common stock is issued this is known as a Paid-In Capital. If there is an excess over the par value, this will be an additional amount and so will be recorded in the Additional Paid-In Capital account.

This account is on the Equity side of the balance sheet and will form part of the capital contribution to the company because it was given to the company by shareholders.

8 0
3 years ago
Brady knows that the brakes on his car do not work, but he tells celia, a potential buyer, that there are no problems with the c
Pachacha [2.7K]
<span>The correct answer would be C. Fraudulent Misrepresentation. In this case Bradley was fully aware that the brakes in his car do not work, just because he got a good buyer he knowingly did not disclose the faults with the car and lies that it is free of issues. This is called intentional Fraudulent Misrepresentation.</span>
6 0
3 years ago
The u. s. government promoted public participation in the 2010 census during the televised super bowl game in its efforts is to
Pavel [41]

Answer:

a. advertising

Explanation:

Advertising: It is a creative marketing strategy to promote product and service by using paid communication channel. It help to spread awareness to the target audience. This technique is used to aware public about product, social cause, scheme or government policies.

There are three primary objective of advertising:

  • Inform
  • Persuade.
  • Remind.

Advertising follow the AIDA model, which states awareness leads to Interests which lead to Desire and finally lead to Action.

5 0
3 years ago
1. An advantage of gig work is...
Vladimir79 [104]

Answer:

B. flexible work hours

Explanation:

Frogvie me pease :(

8 0
2 years ago
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