A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real

Business

1 answer:

dmitriy555 [2]3 years ago

6 0

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

Fixed nominal interest rate = 13%

Real interest rate for the bank's profit margin = 10%

Inflation rate = 3% (13% - 10%)

Unanticipated inflation rate = 7%

Nominal interest rate = 17% (10% + 7%)

But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.

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Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
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Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
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Using this formula
Gross monthly income=Annual salary/Numbers of months in a year
Let plug in the formula
Gross monthly income=$13,500/12 months
Gross monthly income=$1,125
Therefore the Gross monthly income is :$1,125
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Monthly Social security (FICA) (6.2%): $69.75
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Monthly Medicare (1.45%): $16.3125
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Monthly State Tax (4%): $45
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Monthly Local Tax (0.1%): $1.125
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Total Monthly deductions $262.6875
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Trey’s NMI=$862.3125
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Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
Monthly Medicare (1.45%): $16.3125
Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
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