Answer:
exact actual growth rate of your purchasing power was 4.8%
Explanation:
given data
nominal rate of interest = 10%
inflation rate = 5%
solution
we get here exact actual growth rate that is express as
exact actual growth rate = ..........................1
put here value and we will get
exact actual growth rate =
exact actual growth rate = 4.8 %
so here exact actual growth rate of your purchasing power was 4.8%
False, opportunity cost is what you have to give up in order to obtain a good.
Example:
You have 30 minutes to either read a book or nap. You choose to read a book. You're opportunity cost is the 30 minutes you could have spent sleeping.
Answer:
C). Price is very important to business customers.
Explanation:
The chief concern of the business customers is "price" with respect to marketing-related considerations as the supreme goal of a businessman is to make a profit. <em>Therefore, price plays a vital role and thus, it should be taken into account while developing a market strategy for the business customers as they buy the products or services to be used for producing other goods. </em>Thus, price by default becomes a serious concern as a slight alteration or fluctuation in the prices may lead the businessman to incur either a huge loss or disappointment of the consumers. Thus, the price is quite significant to them.
Answer:
$ 201
Explanation:
Thinking process:
The par value = $ 1 000
time = $ 10 years
rate = 8 %
= 0.08
The amount at a time T is given by the formula:
for $ 1 000, the amount will be:
The amount will be $ 1 006
for $ 8 00 it will be =
the amount will be $ 805
therefore, the net gain will be $ 1 006 - $ 805
= $ 201
Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.