Answer:
Part 1:
Nominal rate=8.12%
Part 2:
$1,081.2 is the money you will have at the end of one year.
Part 3:
The Saving account is short of $31.8 ($1113-$1081.2) to buy the bicycle after 1 year because of inflation.
Explanation:
Real Interest rate=2%
Inflation rate=6%
Deposited amount=$1000
Part 1:
Formula:
Real interest rate=
![2\%=\frac{1+Nominal\ rate}{1+6\%} -1\\Nominal\ rate=[(0.02+1)*(1+0.06)]-1\\Nominal\ rate=0.0812](https://tex.z-dn.net/?f=2%5C%25%3D%5Cfrac%7B1%2BNominal%5C%20rate%7D%7B1%2B6%5C%25%7D%20-1%5C%5CNominal%5C%20rate%3D%5B%280.02%2B1%29%2A%281%2B0.06%29%5D-1%5C%5CNominal%5C%20rate%3D0.0812)
Nominal rate=8.12%
Part 2:
How much money will you have at the end of one year can be calculated as:
where:
FV is the future value
PV is the present value=$1000
i is the Nominal interest rate (Calculated above)=8.12%
n is the number of years=1 year
$1,081.2 is the money you will have at the end of one year.
Part 3:
Calculating the price of bicycle after one year due to inflation:
The Saving account is short of $31.8 ($1113-$1081.2) to buy the bicycle after 1 year because of inflation.
Answer:
D.neither short- nor long term investment
Employee factors observed that may warrant further reporting and review by managers and other institutional officials includes:
- Attrition reduction
- improved productivity
- General improved quality of life.
<h3>What factors affect employee performance?</h3>
The efficiency of workers in the workplace is known to be affected by:
- The issue of raw talent and skill
- Cognitive Biases.
- Environment Design, etc.
Therefore, Employee factors observed that may warrant further reporting and review by managers and other institutional officials include attrition reduction, improved productivity, and general improved quality of life.
Learn more about Employee factors from
brainly.com/question/10826903
#SPJ1
Answer: e. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.
Explanation:
Long term bonds are considered to be more sensitive to interest rates as opposed to short term securities. If interest rates were to rise, the bond could lose value.
They are also more sensitive to inflation. If inflation rates rise, the value of payment reduces. It is for this reason that longer term bonds have maturity risk premiums added to them to cater for the amount of time the bond has till maturity.
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The answer to your question is,
Qualification.
-Mabel <3
