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solong [7]
3 years ago
15

5. What is the real rate of interest for an account that offers a 12% nominal rate of return when the rate of inflation is 6% an

nually
Business
1 answer:
Gelneren [198K]3 years ago
8 0

Answer:

Real interest rate= 0.06 = 6%

Explanation:

Giving the following information:

Nominal interest rate= 12%

Inflation rate= 6%

<u>The inflation rate provides the opposite effect on the interest rate. It decreases the purchasing power of an individual. </u>To calculate the real interest rate, we need to deduct the inflation rate.

Real interest rate= 0.12 - 0.06= 0.06

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You should place a date stamp on which of the following types of incoming mail?
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4 years ago
In the current year, Jerry signed a 5-year lease to rent space to the MacBee restaurant. That year, MacBee paid Jerry $24,000 fo
WARRIOR [948]

Answer:

A. $ 24,000

Explanation:

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The $24,000 received as rent for the last year is not an earned income but a deferred income. It may also be called unearned revenue and is accounted for as a liability until it is earned (in the last year).

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3 0
3 years ago
The competition within each strategic group is: a. typically very low. b. more intense than the competition between different st
nlexa [21]

Answer:B. more intense than the competition between different strategic groups.

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7 0
3 years ago
Program Evaluation Review Technique (PERT) is a _____ technique because it analyzes a large, complex project as a series of indi
babunello [35]

Answer:

scheduling technique

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Project Evaluation Review Technique and Critical Path

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3 0
3 years ago
What is a bank that belongs to the federal reserve system called?
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Hope this helps!
8 0
4 years ago
Read 2 more answers
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