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Mkey [24]
3 years ago
12

A bond that pays interest annually yielded 7.25 percent last year. The inflation rate for the same period was 5.50 percent. What

was the actual real rate of return on this bond for last year?
Business
1 answer:
kvasek [131]3 years ago
5 0

Answer:

Actual real rate of return = 1.658768 (Approx)

Explanation:

Given:

Nominal rate of return = 7.25% = 7.25 / 100 = 0.0725

Inflation rate = 5.50% = 5.50 / 100 = 0.055

Actual real rate of return = ?

Computation of actual real rate of return :

Actual real rate of return = [(1+Nominal rate of return)/(1+Inflation rate)] - 1

Actual real rate of return = [(1+0.0725)/(1+0.055)] - 1

Actual real rate of return = [(1.0725)/(1.055)] - 1

Actual real rate of return = [1.01658768] - 1

Actual real rate of return = 0.01658768

Actual real rate of return = 1.658768 (Approx)

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A stadium sold 4000 tickets at 75$/ticket, 5350 tickets at 62$/ticket and, 7542 tickets at 49$/ticket. What was the total ticket
bixtya [17]

Answer:

4000x70=280000

5350x62=331700

7542x49=369558

add that all up to get $981258

Hope this helps!

6 0
2 years ago
A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to
MaRussiya [10]

Answer:

A) $24,602

Explanation:

We can solve this question by finding the periodic deposits needed by using the formula:

FV=PMT*\frac{(1+i)^n-1}{i}

where:

FV= future value   = $220,000

PMT = periodic deposits required = ???

i = effective  interest rate per period = 0.0331

n= number of deposits = 8

However, since the interest is compounded monthly, let's also  calculate the effective interest rate

Effective interest rate = (1+\frac{r}{m}) ^m-1

where; r = 12.5% = 0.125

(1+\frac{0.125}{12})^{12} -1

= 0.1324

Interest rate per period = \frac{0.1324}{4}

= 0.0331

Then;

220,000=PMT*\frac{(1+0.033)^8-1}{0.033}

220,000 = PMT × 8.986

PMT = \frac{220,000}{8.986}

PMT = $ 24,482.5

Since A) $24,602 is closer to $ 24,482.5

Therefore,  $ $24,602  must be deposited every three months

3 0
3 years ago
Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time
g100num [7]

Answer:

"Persuasive"  "reminder"

Explanation:

Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time to stock up on Campbell's Soup." During the storm the ads said, "Stay home and stay warm with Campbell's Soup." The first ad was persuasive advertising, while the second ad was reminder advertising.

3 0
2 years ago
Where to buy this product and what is ut called 50points need to know urgently​
Roman55 [17]

Answer:

3d panel lights - Amazon

Explanation:

6 0
2 years ago
Which of the following steps is NOT a basic step followed by PERT and​ CPM?
vodomira [7]

Answer:

D.

Explanation:

PERT and CPM are network planning techniques.

PERT means Program Evaluation and Review Technique.

CPM means Critical Path Method.

The six steps more common to PERT and CPM are:

-Define the project and identify each activity.

-Develop relationships among the activities.

-Draw the network connecting all of the activities.

-Adding time and/or cost estimates to each activity.

-Compute the longest time path through the network. This is called the critical path.

-Use the network to help plan, schedule, monitor and control the project.

5 0
3 years ago
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