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Vlad1618 [11]
2 years ago
11

9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Th

en inflation turns out to be lower than they both expected. True or False: The real interest rate on this loan is lower than expected.
Business
1 answer:
den301095 [7]2 years ago
8 0

Answer: False

Explanation:

The real interest rate is the nominal interest rate adjusted for inflation.

If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.

For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:

= 8 - 4 = 4%

If inflation is instead 2%, real rate would be:

= 8 - 2 = 6%

Real rate would be higher than anticipated.

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Barney owns a lot valued at $84,000. he purchases an adjoining lot for $66,000 and merges the two properties. the current apprai
bezimeni [28]

The freshly developed lot currently has a $177,500 appraised value. as an illustration: plottage

Plottage is the increase in value obtained by joining two or more neighboring pieces of land into one bigger tract. Assemblage describes the procedure of bringing the parcels together. In most cases, the total value of a parcel will be more than the sum of its smaller parts.

What does plottage increment mean?

The value added by fusing the lots is referred to as plottage increment. As an illustration, Steve is the owner of two adjacent plots. It costs $40,000 for each one. The overall valuation has increased by $10,000 and is now $90,000 when consolidated into a single property.

To know more about Plottage

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6 0
2 years ago
What is 2×78 please help​
Anvisha [2.4K]

Answer:

156

Explanation:

78

× 2

multiply the 2 by 8 first

then multiply the 7 by 2

3 0
3 years ago
Generally accepted accounting principles require that companies use the ____ of accounting.
White raven [17]

Answer:accrual basis

Explanation: the need the truth on the accounting princess so it has to be to accrual basis

3 0
2 years ago
In order to establish criminal liability of the directors of a corporation:
Y_Kistochka [10]

Answer:

a prosecutor must establish that the directors had criminal intent

7 0
3 years ago
Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
2 years ago
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