defguts2032 defguts2032

09-07-2021
Business

contestada

D.Now, if the inflation rate is 18%, the nominal rate of interest on the CD is 24%, and the interest is not taxable, what is the real interest rate on the CD

Respuesta :

Parrain Parrain

13-07-2021

Answer: 6%

Explanation:

Inflation increases prices in an economy and therefore makes a currency weaker because the currency will only be able to buy less than what it was able to.

Inflation therefore affects returns which is why the real returns are the more relevant measure.

The real interest rate accounts for inflation by using the formula:

= Nominal rate - Inflation rate

= 24% - 18%

= 6%

Answer Link

Otras preguntas

Write the function lettersOnly(s) that takes in a string called s, and returns a string containing only the alphabetic characters of s.

Choose the conjunction that fits best in this sentence. I love running races ______ never have enough time to train. Choose 1 answer: Choose 1 answer: (Choice A

Revise the following sentences to avoid dangling and misplaced modifiers. a. When collecting information before purchasing a tablet, the Web proved to be my be

Soldering guns often use a soft solder alloy composed of 35.5% lead. If you are soldering parts onto a wagon and are only allowed to have a maximum of 2.51 g of

During their early years, what was Pink Floyd’s approach to covering songs of blues-derived artists – what did they do during instrumental breaks or solos?

Which of the following securities sales must be registered? a. a sale of $450,000 in shares to 2,003 residents of Oklahoma and Arkansas b. a sale of $10,000,000

What is the solution of |x+7|=2 1) x=5 or x=9 2) x=-9 or x=-5 3) x=-2 or x=2 4) no solution

Your interviewer says to you "You're a graduate of that snooty private school upstate, aren't you? What makes you think you can cope with regular people?" Your

In the 1996 issue of the Journal of Higher Education, professor Taylor from the Howard School of Communications spoke dramatically on the problem of media ethic

(6n² + 46n - 71) / (n +9)