1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marshall27 [118]
2 years ago
8

Assume the nominal interest rate on a 15-year fixed-rate mortgage loan is 5 percent. If the expected inflation rate is 2 percent

, the expected real interest rate is
Business
1 answer:
Oksi-84 [34.3K]2 years ago
7 0

If the expected inflation rate is 2 percent, the expected real interest rate is 3%.

<h3>Expected real interest rate</h3>

Using this formula

Expected real interest rate=Nominal interest rate-Expected inflation rate

Where:

Nominal interest rate=5%

Expected inflation rate=2%

Let plug in the formula

Expected real interest rate=5%-2%

Expected real interest rate=3%

Inconclusion if the expected inflation rate is 2 percent, the expected real interest rate is 3%.

Learn more about expected real interest rate here:brainly.com/question/25456127

You might be interested in
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 pe
kotykmax [81]

Answer:

1. 0.5

2. $360,000

3. $25,500

Explanation:

The BEP which is the break even point is the point where the company's sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

CM Ratio

= 1500000/3000000

= 0.5

Break even point in $ = Fixed cost/ CM ratio

= $180,000/0.5

= $360,000

If the sales increase, the variable cost will also increase as both are dependent on the level of activity.

If sales increases by $51,000, number of units sold

= $51,000/$120

= 425

Increase in variable expense

= 425 * $60

= $25,500

Increase in net operating income

= $51,000 - $25,500

= $25,500

8 0
3 years ago
9. The demand curve is a representation of the relationship between the quantity of a product demanded and:
TiliK225 [7]

Answer:

the price of the product demanded

7 0
4 years ago
Sean checked the clock and saw that it was 10:00 a.m., which was the time the group had agreed upon to start the meeting. Cleari
mariarad [96]

Answer:

Option A. Task

Explanation:

Sean is actually executing the plan that he has set and this execution of the plan involves performing of tasks that are very important to achieve the purpose of the plan. So suppose if had planned to get up early in the morning to go for jogging to have a better health. So if I don't get up early in the morning and going for jogging which is the task role then I will not achieve the purpose of the plan, which is having good health. So here Sean is performing the tasks (Taking the task role) to achieve the purpose of the plan.

5 0
3 years ago
Read 2 more answers
The united states does __________ to redistribute income from the wealthy to the poor than other countries.
Olegator [25]
The term that best fits this statement is this: SIGNIFICANTLY MORE. The United States does significantly more in reallocating earnings from the rich to the poor compared to other countries. This is to reduce the gap between the wealthy and the poor in their country.
8 0
4 years ago
When working with compressed air what psi should you reduce to if using the compressed air for cleaning?
Genrish500 [490]
The correct answer should be 30 because you don't want too much pressure .
4 0
4 years ago
Read 2 more answers
Other questions:
  • A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv
    5·1 answer
  • Platinum is a relatively rare metal vital to a wide variety of industries. Xagor Corporation, a major producer of platinum, has
    6·1 answer
  • Assume that the market for baseballs is in equilibrium. There is a sudden decrease in income throughout the economy. If all else
    9·2 answers
  • When the government attempts to improve equality in an economy the result is often?
    9·1 answer
  • 1. Contrast traditional economies, command economies, and economies.
    13·1 answer
  • The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.
    14·1 answer
  • How can you change your city
    8·1 answer
  • A company that expects that some of its customers will not pay the agreed upon sales price must utilize the.
    14·1 answer
  • Stone sour co. has an roa of 9 percent and a payout ratio of 18 percent. what is its internal growth rate?
    15·1 answer
  • charger company's most recent balance sheet reports total assets of $28,413,000, total liabilities of $16,113,000 and total equi
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!