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bearhunter [10]
2 years ago
15

The consumer price index was 200 in 2008 and 190 in 2009. The nominal interest rate during this period was 4.5 percent. What was

the real interest rate during this period
Business
1 answer:
leva [86]2 years ago
3 0

Answer:

the real interest rate is 9.5%

Explanation:

The computation of the real interest rate is shown below:

But before that inflation rate need to be determined

Inflation rate is

= [CPI this year - CPIlast year] ÷ CPI last year

= {(190 - 200) ÷ 200} ×  100

= -0.05 × 100

i = -5%

Now the real interest rate is

real interest rate = nominal interest rate - inflation rate

= 4.5% - (- 5%)

= 9.5%

Hence, the real interest rate is 9.5%

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Which of the scenarios are examples of free-riding?
bezimeni [28]

Answer:

b. Bob listens to the radio station several hours per day but never donates since he suspects that other people will donate enough to keep the station on the air. 

. Jim is working on a group project for a class in which he wants a high grade. However, since the grades are assigned to the group as a whole and he knows that the other group members will pick up most of the extra work, Jim calls in sick and plays video games on his Dream Station 64. 

Explanation:

Free riding is when a person enjoys the benefit of a good or service but doesn't pay for it. This is a form of market failure.

Bob listens to the radio but doesn't donate and Jim would benefit from the grade given to the group but doesn't participate. These are instances of free riding.

Karl doesn't drive at night and so doesn't enjoy the benefits of the street light and doesn't pay. This is not an instance of free riding.

I hope my answer helps

3 0
3 years ago
A municipal bond carries a coupon of 6.75% and is trading at par. What is the equivalent taxable yield to a taxpayer in a combin
Bingel [31]

Answer:

10.23%

Explanation:

Formula for computation of equivalent taxable yield is r = rm/1-t. Where the tax rate is t, rm is Yield on municipal bond and r is Tax equivalent yield

r = rm/1-t

r = 6.75% / 1 - 34%

r = 6.75% / 0.66%

r = 10.22727272727273%

r = 10.23%

So, the equivalent taxable yield to a taxpayer in a combined federal plus state 34% tax bracket is 10.23%.

8 0
2 years ago
Patrick is looking to open a checking account to use for groceries he should go to a
Sonja [21]

Patrick goes to any U.S bank branch for opening a checking account for the use of groceries with some documents required for opening a checking account.

<h3>What is a Checking Account?</h3>

A checking account makes it simple to access your money for daily transactions while also assisting in keeping your money safe. It's a flexible account that gives you the freedom to handle your daily spending, including bill payments, purchases, and paycheck management.

As a result, Patrick needs to visit any branch of a U.S. bank with some documentation, such as his Social Security number and a current, government-issued photo ID, such as a driver's license or passport, to open a checking account to pay for groceries or other personal expenses.

Learn more about Checking accounts here:

brainly.com/question/20984186

#SPJ1

3 0
1 year ago
Will is currently in a 22% tax bracket and has a 7.2% savings rate of return. What is his after-tax savings rate of return
larisa86 [58]

Based on the information given his after-tax savings rate of return is 5.62%.

<h3>After-tax saving rate of return</h3>

Using this formula
After-tax savings rate=Saving rate of return×(1-Tax rate)

Where:

Saving rate of return=7.2%

Tax rate=22%

Let plug in the formula

After-tax savings rate=0.072×0.78

After-tax savings rate=0.05616×100

After-tax savings rate=5.62% (Approximately)

Inconclusion his after-tax savings rate of return is 5.62%.

Learn more about After-tax savings rate here:brainly.com/question/3520758

3 0
2 years ago
Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated
Brums [2.3K]

Answer:

D. Identify the critical path.

Explanation:

Emily has recently learned that she needs to reduce the duration of her project to meet an imposed deadline. She has calculated the crash cost per unit and knows the maximum units each activity can be reduced. The next step is to Identify the critical path.

3 0
3 years ago
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