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zimovet [89]
3 years ago
13

If the CPI is 170 at the beginning of the year and 181 at the end, and the bank is paying a nominal interest rate of 6 percent,

we see that
Business
1 answer:
igomit [66]3 years ago
3 0

Answer:

a. the real interest rate is negative.

Explanation:

Options <em>a. the real interest rate is negative.  b. the nominal interest rate is negative. c. the nominal interest rate is zero.  d. the real interest rate is positive.  e. the real interest rate is equal to zero."</em>

<em />

If the CPI is 170 at the beginning of the year and $181 at the end.  Then, inflation rate between these two years = (181 - 170) /170 = 0.06471 = 6.47%

The given Nominal interest rate = 6%

Thus, Real interest rate = Nominal interest rate - inflation rate

Real interest rate = (6 - 6.47)%

Real interest rate = -0.47%

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Answer:

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Explanation:

Armstrong Company

Cash flow from operating activities

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Add : Depreciation expenses

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Add : Payment of dividends

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$100

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8 0
3 years ago
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses ma
Murljashka [212]

Answer:

$434,000

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3 years ago
This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 35th birthday today an
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Answer:

a. $21,725.65

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3 years ago
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