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3 years ago

what is the rate of inflation if a savings account has a nominal interest rate of 3% and a real interest rate of 1%

Mathematics

1 answer:

IgorLugansk [536]3 years ago

7 0

Answer:

the rate of inflation is 2%.

Step-by-step explanation:

given:

Nominal interest rate =3%

Real interest rate=1%

To Find:

Rate of inflation=?

Solution:

Nominal interest rate:

Nominal interest rate refers to the interest rate before taking inflation into account.

Inflation rate:

The inflation rate is the percent increase or decrease in prices during a specified period. It's usually over a month or a year.

Real interest rate:

A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor.

Real interest rate ≈ nominal interest rate − inflation rate.

This can be re written as

inflation rate= Real interest rate - nominal interest rate

Substituting the values,

inflation interest = 1+3

inflation interest=4%

i hope this helpsss<3

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The area of a squared lawn and rectangular vegetable garden are equal.The perimeter of lawn is 24 m and its side is twice the br

rjkz [21]

Answer:

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Step-by-step explanation:

4(2y)=24

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Which equation correctly shows the multiplication of the means and extremes in the proportion 7.2∕9.6 = 21.6∕28.8?

vampirchik [111]

Which equation correctly shows the multiplication of the means and extremes in the proportion 7.2 ∕ 9.6 = 21.6 ∕ 28.8?

a. 7.2 ⋅ 9.6 = 21.6 ⋅ 28.8

b. 9.6 ⋅ 21.6 = 28.8 ⋅ 7.2

c. 7.2 ⋅ 21.6 = 28.8 ⋅ 9.6

d. 7.2 ⋅ 28.8 = 21.6 ⋅ 28.8

Answer:

b. 9.6 ⋅ 21.6 = 28.8 ⋅ 7.2

Step-by-step explanation:

When a proportion say a/b = c/d is given, the outer terms are called the extremes while the inner/middle terms are called the means.

In the case of a / b = c / d,

the outer terms are a and d

the inner terms are b and c

Often times, we find the cross products of the proportion to test whether the two ratios in the proportion are equal. To do that, we find the product of the extremes and equate it to the product of the means.

In the case of a / b = c / d,

the cross products are a x d and b x c

So if a x d = b x c, then a/b = c/d is a true proportion.

Now to the question;

Given proportion: 7.2 / 9.6 = 21.6 / 28.8

Extremes = 7.2 and 28.8

Means = 9.6 and 21.6

The correct multiplication of the means and extremes is therefore

9.6 x 21.6 = 7.2 x 28.8

9.6 · 21.6 = 7.2 · 28.8

6 0

3 years ago