Answer:
1.3%
Explanation:
The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
real interest rate=nominal interest rate-inflation rate
nominal interest rate=4.7%
inflation rate= 3.4%
real interest rate=4.7%-3.4%
real interest rate=1.3%
According to this, the answer is that the real interest rate is 1.3%.
She should choose to<span> take a lump-sum of $271,000 now. This is the best option since the other option would have a present value less than $271,000. If you use the present value annuity calculator, you can get the present value of the installment option to be </span>$259,768.60. Therefore, the the lump – sum payment option is the most appropriate.<span> </span>
Answer:
The correct answer is the first option: Because of our limited incomes conflicting with our insatiable wants for goods and services.
Explanation:
To begin with, in the microeconomics theory, the individuals agents that are the consumers are all the time trying to satisfy their needs due to the fact that there is an unlimited desire for goods and services that keep continue to grow all the time and that conflicts with the fact that most of the people have only few and limited resources to get the necessary income to obtain all of those goods and services. That is why that the consumers always look for the way to maximize their satisfaction according to the available income that they have with the purpose to spend it on those goods and services.
Answer:
You must deposit "$74,806.25" today.
Explanation:
The given values are:
Periodic payment,
P = $10,300
Rate of interest,
r = 
= 
Number of periods,
n = 
= 
Now,
The PV of annuity will be:
= ![\frac{P\times [1 - (1 + r)^{-n}]}{r}](https://tex.z-dn.net/?f=%5Cfrac%7BP%5Ctimes%20%5B1%20-%20%281%20%2B%20r%29%5E%7B-n%7D%5D%7D%7Br%7D)
On substituting the given values, we get
= ![\frac{10,300\times [1 - (1 + 2.2 \ percent)^{-8}]}{2.2 \ percent}](https://tex.z-dn.net/?f=%5Cfrac%7B10%2C300%5Ctimes%20%5B1%20-%20%281%20%2B%202.2%20%5C%20percent%29%5E%7B-8%7D%5D%7D%7B2.2%20%5C%20percent%7D)
= 
= 
($)
