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Neko [114]
3 years ago
13

Suppose that nearly all economic agents expect the inflation rate to be 3% next year. Suppose also that the 52-week Treasury bil

l presently pays a nominal annual return of 1%. What is the real annual return received by investors who purchase 52-week Treasury bills? Enter it (in percentage points) below. __________
Suppose you deposit $1,000 in a savings account at a bank. The bank promises to pay you interest at an annual rate of 1.75% for as long as you do not make any withdrawals from the account. Note: the interest you earn during a year is calculated by applying the interest rate to the account balance and any earned interest during a year is credited to the savings account. How many years will take for your account balance to reach $2,000, assuming you do not make any withdrawals? Enter this number of years below: _______________
Business
1 answer:
vlabodo [156]3 years ago
7 0

Answer and Explanation:

The computation is shown below:

a. Real interest rate is

= Nominal interest rate - inflation  rate

= 1% - 3%

= -2%

2. The number of years is  

We have to use the rule of 70  for doubling the investment

= 70 ÷ annual interest rate

= 70 ÷ 1.75%

= 40 years

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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Rhonda has an adjusted basis and an at-risk amount of $25,600 in a passive activity at the beginning of the year. She also has a
aliya0001 [1]

Answer:

a) Ending adjusted basis and at-risk amount $ 0

(b)The current passive loss is $12,000. Because $7,500 of the loss is used to reduce

the at-risk amount to $0, $4,500 is suspended under the at-risk rules ($12,000 − $7,500 = $4,500).

(c) The $7,500 loss that is not limited by the at-risk rules is subject to the passive loss

rules. Because the taxpayer has not generated any passive income during the year, this $7,500 current-year passive loss is suspended. Therefore, the total suspended passive loss carried forward to subsequent years totals $9,000 ($7,500 current-year suspended loss + $1,500 prior year suspended loss).

Explanation:

5 0
2 years ago
Where do the prime minster lives
Tems11 [23]

Answer:

of which country!!!!!!!!!!!!!!!!!!!

The Prime Minister's official residence is 10 Downing Street; the Chancellor's official residence is Number 11. The government's Chief Whip has an official residence at Number 12. In practice, the individuals involved may live in different flats; the current Chief Whip actually lives at Number 9.

7 0
2 years ago
Which situation best illustrates the role of businesses in the circular flow of<br> goods?
OLEGan [10]

Answer:

A

Explanation:

now am not sure but i think the answer is A

4 0
3 years ago
Read 2 more answers
You have been given $100 to start a checking account. Considering the four P's discussed in the module, go online to research an
Anestetic [448]

Answer:

The four Ps happens to be the four significant factors that come into the vicinity when certain service or the good is being marketed with the public as the buyer. And the four Ps are product, price, promotion and the place. We need to select the bank which is nearest to us, and about which we have heard a lot and are confirmed about good service. The $100s checking account is not going to print interest for us, but we need 24 x 7 service as its a sort of current account, and we need to do the daily transaction through it. And hence the bank should provide all the time good service, and most probably 24 x 7 service. And this defines their product. Also, they should charge the least service charge, and that is the price. The bank which best fit according to above 4 p's, is the bank I will choose.

Explanation:

Please check the answer section.

6 0
3 years ago
Godart Co. issued $4.5mn notes payable as a scrip dividend that matured in five years. At maturity, each shareholder of Godart's
Ghella [55]

Answer:

$6,750,000

Explanation:

Since it is stated in the question that the 3mn shares will be paid the principal and interest at maturity, and it is not stated the note is compounded, we apply the following simple calculation:

Amount to pay = $4,500,000 + [($4,500,000 × 10%) × 5 years]

                         = $4,500,000 + [$450,000 × 5 years]

                         = $4,500,000 + 2,250,000

Amount to pay = $6,750,000

Therefore, the amount should be paid to the stockholders at the end of the fifth year is $6,750,000.

4 0
3 years ago
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