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evablogger [386]
3 years ago
5

Treasury bills are currently paying 6 percent and the inflation rate is 3 percent. a. What is the approximate real rate of inter

est? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
nexus9112 [7]3 years ago
3 0

Answer: a. 2.90%

b. 2.81%

Explanation:

Nominal rate = 6%

Inflation rate = 3.1%

a. What is the approximate real rate of interest?

The approximate real rate of interest will be calculated as:

= Nominal rate - Inflation rate

= 6.0% - 3.1%

= 2.90%

b. What is the exact real rate?

Exact real rate will be calculated as:

= (nominal-inflation) / (1+inflation)

= (6.0% - 3.1%) / (1 + 3.1%)

= 2.9% / 1.031

= 2.81%

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Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that s
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Answer:

The amount that Lena will invest in fund B would be $4000.

Explanation:

Given information -

Amount invested in fund A - $6000

Return earned on fund A - 6%

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Let us assume the total amount of fund invested be ($6000 + x)

Now using simple equation , we will take out the value of x which is the amount invested in fund B -

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= $360 - $240 = .04 x - .01 x

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4 years ago
The vice president of logistics for a salty-snack A reading service for the visually impaired requires each reader applicant to
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Answer:

logistics integration with cost-effective technique.

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3 years ago
Creme Bakery just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. If y
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Answer:

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f interest rates rise but the quantity of loanable funds demanded and supplies remains constant, this implies that Group of answ
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