The following data about Atlantis Trading Inc. is available. What is Atlantis’s cash flow from operating activities? Items Amoun
t ($) Net income 45,000 Increase in stock 5,000 Decrease in accounts receivables 2,000 Increase in salaries payable 10,000 A. $54,000 B. $51,000 C. $53,000 D. $52,000
2 answers:
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Answer:
nominal interest rate = 5%
real interest rate = 3%
Explanation:
given data
deposit previous = $2,000
deposit present = $2,100
CPI consumer price index rises = 200 to 204
to find out
nominal interest rate and real interest rate
solution
we get here first nominal interest rate that is express as
nominal interest rate = ( deposit present - deposit previous ) ÷ deposit previous × 100 ..........................1
put here value we get
nominal interest rate = × 100
nominal interest rate = 5%
and
now we get here inflation rate that is
inflation rate = ( CPI present - CPI previous ) ÷ CPI previous × 100 .............2
inflation rate = × 100
inflation rate = 2%
and
real interest rate will be as
real interest rate = nominal interest rate - inflation rate .................3
real interest rate = 5% - 2%
real interest rate = 3%
