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VLD [36.1K]
3 years ago
5

Susan put her savings into a mutual fund that paid a nominal interest rate of 3 percent a year at the beginning of 2005. The CPI

was 225 at the beginning of the year and 232 at the end of the year. Susan earned a real interest rate of _____ percent a year. Round your answer up to the second decimal. 3 3.11 -0.11 0.11
Business
1 answer:
Kay [80]3 years ago
4 0

Answer:

-0.11% a year

Explanation:

Susan's real interest rate is the nominal rate of her investment subtracted by the percentage increase in CPI.

The percentage increase in CPI for 2005 was:

CPI = \frac{232-225}{225}*100 \% \\CPI= 3.11 \%

Therefore, Susan's real interest rate (i) was:

i = 3.00 - 3.11\\i = -0.11 \%

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Lowering the interest rate will:A. decrease spending on new homes. B. decrease spending on consumer durables. C. decrease the va
ahrayia [7]

Answer:

D: increase investment projects by firms

Explanation:

When interest rates are lowered, it is a green signal for small and medium size enterprises to borrow money for their investment projects.

3 0
3 years ago
A working group convened by NASAA has developed a model fee disclosure schedule to help investors better understand the costs in
WARRIOR [948]

Answer:

Correct Answer:

C) issuance of a stock certificate

Explanation:

In the model developed by group working for NASAA which was to disclose model fee and cost involved in doing business with them, it would disclose all associated cost involved. <em>The only thing it would not disclose would be regards to stock certificate issuance since it falls outside their perview.</em>

7 0
4 years ago
Which of the following types of cover letters would assist an applicant in landing a job interview?
defon

Answer:

Explanation:

The answer is D, All of above.  

A prospecting cover letter goes together with your resume when applying to a company that may not have recent openings. These letters emphasis on how your skills and experiences match the work environment rather than concentrating on a specific position.

An application cover letter is   a document sent with your resume to make available additional material about your skills and experience. It is intended to provide complete information on why you are a competent candidate for the job.  

A networking cover letter is is sent throughout your job pursuit to get help from a contact in your industry or career field and to introduce yourself to a possible employer.

4 0
2 years ago
Intellectual capital alludes to substantial resources and assets of a venture that are caught by traditional accounting reports.
Alex787 [66]

Answer: False

Explanation:

Intellectual capital simply refers to the intangible assets and the resources that helps in the contribution to the value of a particular company or enterprise and help such company to gain competitive advantage over its counterparts.

It should be noted that these assets and resources aren't caught by the traditional accounting reports.

The above statement means that the statement in the question is wrong. Intellectual capital are not caught by traditional accounting reports.

8 0
3 years ago
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold ev
zmey [24]

Answer:

The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.

Explanation:

The amount of the tax on a bottle of wine is $5 ($3 + $2).

The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers.  This implies that the burden passed to consumers is $3 out of the total tax burden of $5.

The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers.  This means that the burden passed to producers is $2 out of the total tax burden of $5.

If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5).  This would have reduced demand for wine as consumers would have been forced to bear the total burden.  This would have made the tax unequitable.  This would have been the case unless demand is inelastic.  That means that the total demanded is not sensitive to price increases.

3 0
3 years ago
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