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Free_Kalibri [48]
2 years ago
10

Michael has been saving his money and wants to invest it. After doing some research, he has decided to invest $20,000 into a Cer

tificate of Deposit. The interest rate on the CD is 3% with a term of five years, and the interest is paid out annually. Based on recent inflation, Michael is planning on an annual inflation rate of 2%. Which statement best explains the interest rates related to this CD? The nominal interest rate is 3 percent, while the real interest rate is 2 percent. The nominal interest rate is 3 percent, while the real interest rate is 1 percent. The nominal interest rate is 1 percent, while the real interest rate is 2 percent. The nominal interest rate is 2 percent, while the real interest rate is 4 percent.
Business
2 answers:
victus00 [196]2 years ago
8 0

Answer: the next one after b is A on the assignment

$200

Explanation:

MissTica2 years ago
3 0

Since he is planning on an annual inflation rate of 2%., the statement that explains the interest rates relating to the CD is nominal interest rate is 3% while the real interest rate is 1%.

A real interest rate refers to the nominal rate which is adjusted for inflation.

  • We are given that Interest (nominal rate) is 3% and planned Inflation rate = 2%

  • Real interest rate = 1% (Nominal rate - inflation rate)

Hence, the statement that explains the interest rates relating to the CD is nominal interest rate is 3% while the real interest rate is 1%.

Therefore, the Option B is correct.

Read more about Real interest rate

<em>brainly.com/question/25816355</em>

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Your textbook discussed a model of a simple economy with four markets: labor, capital, energy, and food. Which of the following
Mkey [24]

Answer:

The correct answer is the option C: The household demand for labor equals the industry supply of labor

Explanation:

To begin with, when it comes to the microeconomics theory the market of labor is considered to be as a factor of production market and from that point of view the labor is demanded by the companies to the households who are the ones who offered the labor due to the fact that the workers are the one who put their force to disposition of the companies. And that is why that it would be inconsistent to say that the household demand for labor will equals the industry supply of labor, because it is all the way around, the household supply of labor will equals the industry demand of it.

5 0
3 years ago
A firm manages its inventory with an order-up-to level (i.e., a base stock level). The review period is one day (so the manager
ICE Princess25 [194]

Answer: The firm manager should order 10 units today

Explanation:

Based on the information that have been given in the question, we should note that the number of units in order before it orders today will be 14.

Also, since the order up to level is 10, it simply means that the firm manager cannot order more than 10 units per day which means that option C of 14 units is Incorrect.

The correct answer will be that the firm manager should order 10 units today.

7 0
3 years ago
Herman Miller values employee characteristics such as integrity and trust, which considers such qualities to be important ______
melamori03 [73]

Answer:

c.  interpersonal skills

Explanation:

Interpersonal skills are the skills we use every day when we communicate and interact with other people, both individually and in groups. They include a wide range of skills, but particularly communication skills such as listening and effective speaking, active listening, team work, Motivation, Flexibility and dependability

6 0
3 years ago
According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, th
oksano4ka [1.4K]

Answer:

Given that,

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Exchange rate between India and U.S a year ago :

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Above information conclude that the currency of India depreciates whereas  currency of united states appreciates.

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3 0
3 years ago
How does a policy manual help an organization
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4 0
3 years ago
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