Answer: B) A planned unit development
Explanation: The planned development of the unit is a planned and purposeful use of land and space where densely populated residential units are being built with all the necessary amenities and features. It is also a regulatory process for the use of space and land, as it regulates the optimal use of the said space and land for different purposes, from housing, shopping malls, parks, children's playgrounds, sports and spa centres, etc. Such blocks of flats and all the aforementioned dedicated contents are also cost-effective, since the use of that space and land on which densely populated residential units will be erected and will generate good income is optimised.
Given Information:
Nominal Interest Rate = 6.3 %
Inflation Rate = 1.7 %
Required Information:
approximate real rate of interest?
exact real rate of interest?
Answer:
approximate real rate of interest = 4.6%
exact real rate of interest = 4.5%
Explanation:
Nominal Interest Rate: The interest rate that a person earn or pay on a loan.
Real Interest Rate: The nominal interest rate after adjusting for inflation.
Relation between Nominal and Real Interest Rate: The fisher equation
Real Interest Rate = Nominal Interest Rate - Inflation Rate
approximate real rate of interest = 6.3% - 1.7% = 4.6%
exact real rate of interest = (1 + 0.063)/(1 + 0.017) = 1.045 = 4.5%
