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Nat2105 [25]
3 years ago
5

g You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. If the inflation rate is 1.09%, by how

much will your purchasing power increase in percentage terms
Business
1 answer:
gayaneshka [121]3 years ago
6 0

Answer:

Real purchasing power increase= 2.16%

Explanation:

Giving the following information:

You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.

In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.

The inflation rate decreases the purchasing power of nominal income.

Real purchasing power increase= annual interest rate - inflation rate

Real purchasing power increase= 3.25 - 1.09= 2.16%

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A property title search firm is contemplating using online software to increase its search productivity. Currently an average of
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Answer:

Explanation:

Productivity per unput dollar=Fees charged from clients/total cost to firm

There are 3 options:

1. Using current software:

Av time=40 min

Researcher's cost=$2 a min

Total cost=40*2=80

Productivity per dollar input=Fees charged from clients/total cost to firm= 400/80=$5

2.

Using company A's software

Av time=30min

Cost of reducing av time=$3.5

Researcher's cost=$2

Total =30*2+3.5=63.50

Productivity per dollar input=400/63.5=6.3

3.

Using company B's software

Av time = 28 min

Cost of reducing av time=$3.6

Researcher's cost=$2

Total cost=28*2+3.6=59.6

Productivity per dollar input=400/59.6=$6.71

Answer - Using company B's software

3 0
3 years ago
List the four steps in the response model for answering behavioral interview questions.
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One technique in answering behavior interview questions is STAR where S makes for specific situation, T for task, A for action and R for result. SImple but efficient procedure
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7 0
3 years ago
Read 2 more answers
Suppose you are committed to owning a $215,000 ferrari. if you believe your mutual fund can achieve an annual return of 10.8 per
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Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.

We have

Price of the Ferrari nine years from now (Future Value - FV)    $215000

Expected Rate of return on the mutual fund (r)    10.8%

Time until I turn 30  (n)   9 years

We can calculate the Present Value (PV) or the money to be invested today as

\mathbf{PV = \frac{FV}{(1+n)^{n}}}

PV = \frac{215000}{(1+0.108)^{9}}

\mathbf{PV = 85424.14022}

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3 years ago
At the onset of the recent economic slowdown, prices at the grocery stores continued to rise. in some cases, products such as mi
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<span>The economy was slowing, but prices were rising, signifying the potential for  stagflation.
</span>Stagflation is term used in economics to denote economic situation characterized with  high unemployment, rising prices, economic growth. This situation occurs when the overall price level rises rapidly. In our case, <span>"the price of eggs was up 40% and milk was up 26%., which means that the prices raised rapidly.</span>
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3 years ago
A treaty that can be signed between two or more countries to lower tariffs and improve the import and export of goods is a free
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When a treaty is signed between nations to lower tariffs and improve imports, this is a free trade agreement. This is <u>True</u>.

<h3>What is a free trade agreement?</h3><h3 />

Sometimes nations get together and discuss a treaty that will allow for trade to be easier between them.

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