1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreev551 [17]
3 years ago
14

Jermaine lives in a world where the nominal interest rate is 3% and the inflation rate is 1%. today, jermaine has $200, with whi

ch he could purchase 80 zaps. however, jermaine realizes he could also put the money in savings for one year; if he did this, then in one year's time he would have –more and would be able to purchase – more zaps. (assume that the price change for zaps reflects the general inflation rate.)
Business
1 answer:
Assoli18 [71]3 years ago
4 0
<span>Divide $200 by 80 to get $2.50 price per zap. At 3%, Jermaine's $200 would grow to $206 ($200 x 1.03) = $206 by the end of the year. At the end of one year he would have $6 more and would be able to purchase two more zaps (2 X ($2.50 X 1.03), or 2 X $2.575 = $5.15) He would have $.85 left in change.</span>
You might be interested in
Suppose you purchase a $5,000 bond that pays 7% interest annually and matures in five years. If the inflation rate during the ne
galina1969 [7]

Answer:

2.88%

Explanation:

Use the following formula to calculate the real rate of return

Real rate of return = \frac{( 1 + Nominal interest rate )}{( 1 + inflation rate)} -1

Where

Nominal Interest rate = 7% = 0.07

Inflation rate = 4% = 0.04

Placing values in the formula

Real rate of return = \frac{( 1 + 0.07 )}{( 1 + 0.04)} -1

Real rate of return = \frac{1.07}{1.04} -1

Real rate of return = 1.0288 - 1

Real rate of return = 0.0288

Real rate of return = 2.88%

8 0
3 years ago
According to Scott, the COO of Barcelona Restaurant Group, employees are given the opportunity and freedom to achieve organizati
Serjik [45]

Answer:

b. contingency approach to management.

Explanation:

The Contingency Approach to management tells us that there is no best style of management.

The Employees should in turn push to encourage to adopt situation specific management approach since It gives them an opportunity to explore new things and problem specific solutions.

6 0
3 years ago
Identify and discuss the “needs” of a society.
sweet [91]

A traditional list of immediate "basic needs" is food (including water), shelter and clothing. Many modern lists emphasize the minimum level of consumption of 'basic needs' of not just food, water, clothing and shelter, but also sanitation, education, and healthcare.

7 0
3 years ago
Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J
katrin [286]

Answer:

formed a valid contract because Rachel's outward expressions showed the formation of a contract.

Explanation:

In contract, outward expressions refers to a situation when both parties has directly communicate the terms of a certain transaction and agreed upon it.

The contract is considered as 'valid' and considered to be a verbal agreement as soon as Rachel proposed a price and Julius agreed upon it.

One thing to remember, Even though this contract is considered as valid , it would be hard for Julius to held Rachel accountable to court since he has no way to proof that the verbal agreement has been made.

8 0
3 years ago
Del is buying a $250,000 home. He has been approved for a 5.75% mortgage. He was required to make a 15% down payment and will be
alukav5142 [94]

Answer:

Del is expected to prepaid to pay $535.62 in prepaid interest at the closing.

Explanation:

The down payment of 15% is $250000*15%=$37500

The balance of mortgage net of down payment=$250000-$37500

                                                                               =$212500

Interest yearly=$212500*5.75%=$12,218.75

A year interest divided by 365days give one day interest.

A day interest=$12218.75/365=$33.48

Total interest  to pay at closing=16days*$33.48

                                                     =$535.62

The number of days was 16 because July has 31days and deal was closed on 15th,hence 31 minus 15 gives 16.

4 0
3 years ago
Other questions:
  • A lessor is a party who acquires a right to the possession and use of goods under a lease.a) trueb) false
    12·1 answer
  • The balance sheet caption for common stock is the following: Common stock, $5 par value, 2,550,000 shares authorized, 1,120,000
    14·1 answer
  • A change in which of the following will NOT shift the demand curve for hamburgers? the price of hot dogs the price of hamburgers
    11·1 answer
  • Your company has established a hurdle rate, or cost of capital of 15% for new investment projects. You have just analyzed a new
    6·1 answer
  • What is the main purpose for the operation bank
    11·1 answer
  • What causes you to pay the prices that you do for these goods and services? What determines the price that's on the price tag? W
    11·1 answer
  • Select the correct answer.
    14·1 answer
  • Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks, but the manufacturer believes customers are not buying the
    11·1 answer
  • From 1990 to 2000, calculate the percentage change in Instructions: Enter your responses rounded to one decimal place. If you ar
    14·1 answer
  • The Economic Freedom of the World index provides a measure of the extent to which various countries
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!