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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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Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month.
lina2011 [118]

Answer:

$ 7,012.50

Explanation:

Please see attachment

6 0
3 years ago
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growt
maw [93]

Answer:

The Current share price is $94.79

Explanation:

Dividend Growth Model determines the share price of a company which offers perpetual dividend with stable growth. It is the expected dividend of a share divided by the net return rate of growth rate .

According to given data

Last dividend = D0 = $3.40

Rate of return = 15%

Growth rates:

For 3 years = 29% per year

After 3 years = 7.3% in perpetuity

Dividend after 3 years = D3 = 3.40 x ( 1 + 0.29 )^3 = $7.30

We can calculate the price of share using following formula:

Price of share = D3 / Rate of return - Growth rate

Price of share = $7.30 / 15% - 7.3% = $7.30 / 7.70% = $94.79

4 0
3 years ago
The Great Depression changed attitudes toward the labor movement.
ASHA 777 [7]
TRUE. In the early 1930s, as the nation slid toward the depths of depression, the future of organized labor seemed bleak. ... The tremendous gains labor unions experienced in the 1930s resulted, in part, from the pro-union stance of the Roosevelt administration and from legislation enacted by Congress during the early New Deal.
hope this helps!!
8 0
3 years ago
Fiona is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of greeting cards in drugstor
Viefleur [7K]

Answer:

These are the options for the question:

a. specialty-line wholesalers.

b. assemblers.

c. full-service stockers.

d. in-store maintainers.

e. rack jobbers.

And this is the correct answer:

c. full-service stockers.

Explanation:

Fiona is a full-service stocker, or retail stocker. A retail stocker is a person who is responsible for organizing (stocking) products in the shelves of a retail space (a large store, a supermarket, a convenience store).

Retail stocker also help customers by giving directions within the store, or by helping elderly, disabled, and other people reach products that they might not be able to reach by themselves.

7 0
3 years ago
A 38-year-old investor places $25,000 into a single premium qualified deferred variable annuity. Twenty years later, with the ac
Bad White [126]

The total tax liability is $12,500.

<h3>What is the total tax liability? </h3>

Due to the fact that the account is qualified annuity, the total amount withdrawn is subject to tax.  Also, because the investor is less than 59.5 years, the investor pays an additional tax of 10%.

The effective total tax = 25% + 10% = 35%

Total tax liability = 25% x $50,000

= 0.25 x $25,000 = $12,500

To learn more about taxes, please check: brainly.com/question/25311567

6 0
2 years ago
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