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geniusboy [140]
3 years ago
5

Lydia receives a $2,000 gift and wants to open a savings account. Which bank interest would be the best for her if the current i

nflation rate is
3.5%?
O4% interest
O3% interest
O3.9% interest
O4.1% interest
Business
1 answer:
scoray [572]3 years ago
7 0

Answer:

O4.1% interest

Explanation:

Inflation erodes the strength of a currency. If the interest rate on offer is below the inflation rate, saving money in a bank will result in a loss.

To gains from a savings account, the real rate of interest must be positive. The real rate will the nominal interest rate( the quoted rate) - the inflation rate. The higher the nominal rate, the better for the customer.

In this case, 4.1 % will be best for the customer. If the inflation rate is 3.5%, an interest rate of 4.1% will give a real interest rate of 0.6%.

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What are cash flow financing activities
spin [16.1K]

Answer: Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.

Explanation:

7 0
3 years ago
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. The total value of yo
diamong [38]

Answer:

hope this helps

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Do not round your intermediate calculations.

Old portfolio return

11.0%

Old portfolio beta

1.20

New stock return

21.5%

New stock beta

1.70

% of portfolio in new stock = $ in New / ($ in old + $ in new) = $10,000/$100,000=

10%

New expected portfolio return = rp = 0.1 × 21.5% + 0.9 × 11% =

12.05%​

New expected portfolio beta = bp = 0.1 × 1.70 + 0.9 × 1.20 =

1.25​

Explanation:

7 0
2 years ago
Bill wants to give Maria a $590,000 gift in two years. If money is worth 12% compounded semiannually, what is Maria's gift worth
PtichkaEL [24]

Answer:

the present value is $467,335.2613

Explanation:

The computation of the value worth today is shown below:

= Amount in two years ÷ (1 + rate of interest)^number of years

= $590,000 ÷ (1 + 12% ÷ 2)^2×2

= $590,000 ÷ 1.06^4

= $590,000 ÷ 1.26247696

= $467,335.2613

Hence, the present value is $467,335.2613

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

8 0
3 years ago
One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such
Darina [25.2K]

The benefit would decrease by $7,020 annually would be the answer.

According to the 2022 Annual Report of the Social Security Board, the surplus of trust funds paying severance, disability, and other social security benefits will be exhausted by 2035. This is a year behind what the Board of Trustees predicted in its 2021 report.

If you are less than the full retirement age and exceed your annual income limit, your benefits may be reduced. If you haven't reached full retirement age throughout the year, you will be deducted $ 1 from your benefits for every $ 2 you earn over your annual limit. For 2022, the limit is $ 19,560.

Learn more about Social Security payroll here:brainly.com/question/1156607

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5 0
1 year ago
When an indian importing firm wants to import u.s.-made products, it must first secure permission and dollars from the reserve b
Kitty [74]
Based on the given scenario above, the type of restriction that is being shown is called CURRENCY DEVALUATION. When there is devaluation in the currency, this would mean that the given currency would have a lesser value as based on an exchanged rate system with reference to foreign currency.
8 0
3 years ago
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