New nominal interest rate:

Q: 1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year ? A) 0.5% B)…

A: The nominal interest rate is the rate that is charged by the banks when they lend money to any…

Q: In a specified year, nominal gross domestic product grew by 12 percent and real gross domestic…

A: Nominal GDP growth rate= Real GDP growth rate+ Inflation rate  Here; Nominal GDP growth rate = 12%…

Q: The CPI has risen from 130 to 115, what is the inflation rate?      10%     20%     15%…

A: Inflation rate helps in determining the percentage of increase in prices of goods and services.

Q: Alfredo wants to know how much he must put in a bank account today to achieve an amount equal to…

A: Given that; Future value of the invested amount= $20,000 Time =14 years Inflation is 8%. Interest…

Q: An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent.…

A: The nominal rate of return is the amount of money generated by an investment before factoring in…

Q: Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The first year Jeff paid for a membership at his gym, the fee was $440.00. He renewed his membership…

A: Here, it is given that Jeff paid his membership fees three times and nominal value changes…

Q: The value for nominal interest rate is 30% and the value for inflation is 3%  What is the real…

A: # Real interest is the difference between nominal interest rate and inflation rate.

Q: If you are looking for a 4% real return (inflation-free interest) on your investment, would you be…

A: The nominal interest rate can be calculated as follows: Thus, the nominal interest rate is 9.2%

Q: What will be the real interest rate if:- Nominal interest rate = 5%  Inflation rate = 3.3%

A: The data presented in the above question is:- Nominal interest rate = 5%    Inflation rate = 3.3%…

Q: 1.23 The inflation rate is the.. a) Monthly percentage rate increase in the price of all goods and…

A: The price of goods and services changes over time. The price indexes measure the changes in the…

Q: If inflation is 1% and nominal interest rate is 9%  Calculate real interest rate

A: It's given in the question that:- Inflation = 1%  Nominal interest rate = 9% Thus we need to…

Q: The apparent interest rate is 9.18% and the real interest rate is 6%. What is the inflation rate?

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

Q: 1.1. A decline in money purchasing power. Annual inflation was 7%. The percentage of money decreased…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Explain the concept: nominal interest rate

A: Interest rate is the a prescribed percentage that is supposed to be paid by the borrower to the…

Q: MCQS 1) The nominal interest rate is: a. not adjusted for current economic conditions b. adjusted…

A: 1) Real interest rate=Nominal interest rate-Inflation rateThus,Nominal interest rate=Real interest…

Q: First month's shopping cart total is 565.54$ (base month) Second month's shopping cart total is…

A: Given information, Sales in base month: $565.54 Sales in second month: $568.19 To find: inflation…

Q: Define the term inflation-adjusted required rate of return?

A: The required rate of return refers to the minimum level of a return that is expected out of an…

Q: Last year you bought a house for $200,.000, and you sell the house this year for $230.000,…

A: Answer; 1) inflation = (115.5/110) - 1 = 0.05 or 5% Capital gain = 230000-200000 = 30000 Tax on gain…

Q: --> In an economy, The inflation rate is 6%. At this situation a person takes a loan at 13% interest…

A: # Before moving on to calculations, we must first understand what actually is the relationship…

Q: Give 5 functions of the BSP when a society suffers from high inflation rate.

A: The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines, it was established on…

Q: Mary will earn $42,544 this year and $21,839 next year. The real interest rate is 15% between this…

A: The intertemporal budget constraint shows the amount of consumption desired by the households in two…

Q: Engineering Economics ! Define the following and give 2 examples each ! 1. Simple Interest 2. Cash…

A: 1. Simple interest is a speedy and simple technique for working out the interest charge on a credit…

Q: Is the dealing with the effects of interest within an interest- period, is very complicated…

A: Interest rates determined by the central bank in their territory, By adjusting repo rate and reverse…

Q: The__________________ is the nominal interest rate minus the rate of inflation.   a)annualized…

A: Interest rates play an important role in the economy. The nominal and real interest rates are the…

Q: 1-)The rate is equal to the the rate rate .... ......... Please select one or more option; a) real…

A: 1.Real interest rate accounts for inflation therefore answer is Real interest rate=nominal interest…

Q: If inflation rate is 1% and nominal interest rate is 2.1%  What will be the real interest rate

A: The given information is as follows:- Inflation rate in the economy = 1% This shows the general rise…

Q: Real interest rate is equal to Nominal Interest rate when inflation is 2% True/False

A: # nominal interest rate doesn't take into account the effect of inflation anthers it cannot be used…

Q: 11. Sophia pays $200 into a bank account at the end of each month. The annual interest paid on money…

A: Deposit per month = 200 Annual interest paid which is 3.1% compounded monthly

Q: Suppose you start saving for retirement when you are 45 years old. You invest $5,000 the first year…

A: Investment amount, P = $5000 Increment in amount, g = 3% Time period, n = 20 Interest rate, r = 10%

Q: Over the past year (from 1 year ago to today), the inflation rate was 4.31%, the risk-free rate was…

A: The correct answer is given in the second step.

Q: Using the table below, find the real value of a payment of $2,500 to be recelved each year given the…

A: Real value of $2,500 in year N = $2,500 x (100 / CPI in year N) Real value, 2016 ($) = 2,500 x (100…

Q: Inflation from one year to the next was 4.0% as measured by consumer price index (CPI). (a) Find the…

A: Inflation Rate = 4% Initial annual income = $45000   (a) Purchasing power after 1 year =…

Q: --> Nominal Interest rate is 10%, inflation rate is 3% Find the real interest rate?

A: Given: Nominal Interest Rate = 10% Inflation Rate= 3%

Q: Find inflation rate if real interest rate is 3% and nominal interest rate is 4.3%

A: The information being given is:- Real interest rate = 3% Nominal interest rate = 4.3% We have to…

Q: Show the solution of the problem and explain steps on how to solve:  Find the nominal rate which is…

A: Given nominal rate = 12 % compounded monthly Annual effective rate = (1 + 12%/12 months)^12 month  -…

Q: A loan has an interest rate of 8%, and the inflation rate is 2.4%. What is the loan’s real interest…

A: A real interest rate is interest rate adjusted to remove the effects of inflation and gives the real…

Q: a year. In 19 years how much will you need to earn per year to maintain the same purchasing power if…

A: We use the formula to find maintain income if inflation is 1.50% per year

Q: CPI (as of December Inflation rate (%) 31 of the year) 124.5 Year |Not applicable for 2013 2013 2014…

A: CPI:- The Consumer Price Index refers to a measure of the average change over time in the prices…

Q: The following price index is available for a product:  Year  Price index  1 (base year)  100 2…

A: Here, the given table provides information about price index for a product in 5 different years over…

Q: The nominal interest rate is equal to the real interest rate plus

A: Central banks determine short-term nominal interest rates, which are used to set other interest…

Q: Waleed is lending Emad $1,000 for one year. The CPI is 1.40 at the time the loan is made. They…

A: Given,   Lent money = $1000  CPI at the time of loan = 1.40  Expected CPI = 1.54  Real interest rate…

Q: Explain how high inflation in a booming real estate market could benefit an engineer who sells a…

A: A business cycle is the cyclical rise and fall in the economy .There are four phases of a business…

Q: If the rate of inflation is 5.7 %​, what nominal interest rate is necessary for you to earn a 2.2 %…

A: The nominal interest rate (or money interest rate) is the percentage increase in money you pay the…

Q: 52. Retirees have their benefits adjusted annually by the to compensate them for inflation. A. wage…

A: Inflation is the rate at which prices rise over a specific time period. Inflation is often defined…