Q: What is the real interest rate?
A: Real interest rate is an interest rate which removes the effect of inflation and reflects the real…
Q: Define the term an amortized loan?
A: An amortized loan is a form of loan with scheduled, regular payments that relate to both the…
Q: Ellena's pension was $10 per period in 2033. What amount of money in the base year would give her…
A: Interpretation of Price Indices: Rs 100 in 2033 hold the same purchasing power as Rs. 90 in 2031.…
Q: Your paycheque for the year is higher this year than last year. Does that mean that your real income…
A: In an economy, a paycheque refers to the amount of compensation a worker gets in terms of money when…
Q: suppose a family income increases by 3 percent at the same time that inflation is 0 percent what…
A: If an income of a family increases by 3% but the inflation rate is 0% i.e. unchanged. This implies…
Q: Interest Rate R Investment
A: The Keynesian economics would result in the demand side economics which determines the equilibrium…
Q: f an insured purchases an Annuily from which income is received, the insured is the receiver…
A: Answer is given below
Q: Find the consumption when savings are 94 and the income is 110
A: A consumer either spends income on consumption of goods and services, or saves income.
Q: What is the Sinking-Fund Factor?
A: The sinking fund factor is the calculation that tells the investor how much of an annuity payment…
Q: Dennis is planning to invest his money to earn more. He is willing to take a little risk by buying…
A: Dennis is want to buy income earning assets and he is ready to bear less risk . Then following…
Q: 7. Net capital gains from the sale of property is a part of domestic factor income.
A: Domestic factor income considers the compensation received by domestic employees and the operating…
Q: Calculate the value of APS when the savings are given as 62 and the income is 8
A: Accordingly the information in the question, Savings are = 62 Income = 8 APS = ?
Q: DIFFERENCE BETWEEN Debt and equity markets
A: Debt and equity markets are markets where firms borrow capital and investors lend capital.
Q: Repayment of loan with interest is a capital expenditure True/False
A: # The upgradation for maintenance of physical assets is counted as capital expenditure.
Q: Below is some data for Jane. Year 1: pr 15, X 20, py = 25, Y = 30 Year 2: pr 6,Py 30, Income = 1050…
A: Year 1 Pr (X) + Py (Y ) is less than M Putting the values we get , 15(20) + 25(30) = 300 + 750 =…
Q: What is the Decision Rule for simple Investments?
A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…
Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…
A: The difference b/w the effective-interest rate(ER) and the nominal-rate(NR) is that the NR does not…
Q: Which of the following is NOT a retirement plan? a) 401k plan b) 529 plan c) IRA plan d) 501(c)…
A: Retirement planning is the process of securing life after retirement when the person will be unable…
Q: how to calculate present value
A: The current value of a future sum of the amount of stream of the given cash flows in a specified…
Q: How might deflation set off further delation
A: A deflationary spiral can be defined as a "downward price reaction to an economic crisis leading to…
Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old.…
A: The age of tom = 20 years Total working-age = 50 -20 = 30 years Total not working age = 80 - 50 = 30…
Q: Explain the term Present Value of Perpetuities?
A: Answer - Present Value of Perpetuities - It is the cash flow which continue indefinitely. It is…
Q: Are there specific experiences, education, knowledge, and skills required for an effective budget…
A: Education and experiences (mostly preferred): Bachelors degree MBA or professional certificate can…
Q: Discuss the importance of long range planning for retirement
A: Financial planning is highly important in order to determine the financial independence of the…
Q: What is the use of inflation-adjusted figures?
A: Inflation is the cost of goods and services rising across the economy. Because inflation is not a…
Q: Which healthcare benefits retirees get differ from those provided by pensions?
A: A pension plan is financed by the business, while a retirement is funded by the worker. (A few…
Q: If the price index rises from 100 to 120, the purchasing power value of the dollar Multiple Choice…
A: Price index shows the change in general price level over a period of time. Here, price index changes…
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: What is the base period?
A: Economics studies how scarce resources are allocated in a manner that most of the human needs are…
Q: What is the relation between income and life expectancies?
A: The relationship between income and life expectancies can be best explained with the help of the…
Q: The value of net factor income from abroad can never be 0 True /False
A: The NFIA or net factor income from abroad is given as the difference between the factor income from…
Q: Calculate the value of APS if Savings is $320 million and income is $420 million
A: The information being given to us is as follows:- Savings = $320 million Income = $420 million We…
Q: Using practical examples, explain the difference between transfer payments and government purchases.
A: Government purchases vs transfer payments
Q: When do you release a retentiong guarantee/bond?
A: A retention bond is a kind of performance bond that protects the customer in the scenario when the…
Q: In a(n). as either a fixed dollar or a percentage-of-earnings amount linked to years of seniority in…
A: The labor market is a place where the laborers will be willing to sell their labor power at the…
Q: How can we determine the real (inflation-free) rate of return for a bond?
A: Real rate of return for a bond is a return on bonds, which is adjusted for inflation. Formula:
Q: It is the number of individual buy orders and the total number of shares that wish to buy.
A: It denotes the number of shares of a security that investors are prepared to buy at a certain offer…
Q: The future value of a dollar as the interest rate increases and the longer the money remains…
A: The relationship between future value and the interest rate and time is positive i.e.. direct. It…
Q: How is an Effective Interest Rate calculated?
A: The effective rate of interest is an important concept in economics. The effective rate of interest…
Q: Define interest rate.
A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…
Q: Discuss how the present value of a future income payment is calculated.
A: The present value measures the current value of a future sum of money, given a specified interest…
Q: Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need…
A: Formula - A=P(1+r/n)nt A is the value at retirement P is the principal, which is the $4,000…
Q: What Is the tern Market Interest Rates?
A: The market interest rate is the interest rate which prevails in the market on the deposits and other…
Q: The future value of a dollar as the interest rate increases and money remains invested the longer…
A: Interest rate: It is the amount charged by a borrower on the amount loaned.
Q: What is FOREX rate?
A: The forex is a type of market. Usually, the market is a place where the buyers and sellers interact…
What is meant by an asset’s unadjusted basis? Adjusted
basis?
Step by step
Solved in 2 steps
- Solve NI by adding up the type of income which make up NI and by making the required addition and /or subtraction from NNP.What are the benefits of inflation indexation in fixed income products? Why is it important for retirees? What is the cost for having inflation indexation as a product feature?Personal income (PI) is the income that households are free to spend or save as they please. true or false
- Distinguish between nominal and real interest rates. Which is more relevant in making investment and R&D decisions?The withdrawal of income from circular flow of income example saving is known as _______A family of four has an income of $15,000 today and will earn $24,000 tomorrow. If the family consumes $11,500 in the first period and $15,000 in the second period what is the interest rate?