Frank is lending $1,000 to sarah for two years. frank and sarah agree that frank should earn a 2 percent real return per year. instructions: enter your responses as as whole numbers. a. the cpi (times 100) is 100 at the time that frank makes the loan. it is expected to be 110 in one year and 121 in two years. what nominal rate of interest should frank charge sarah? the nominal rate of interest charged should be %. b. suppose frank and sarah are unsure what the cpi will be in two years. how should frank index sarah’s annual repayments to ensure that he gets an annual 2 percent real rate of return. frank should charge sarah % the inflation rate.
Answers: 2
Business, 21.06.2019 19:50, Taiyou
The u. s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i. e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?
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Business, 21.06.2019 22:20, kyla1220
Suppose a ceiling fan manufacturer has the total cost function c(x) = 48x + 1485 and the total revenue function r(x) = 75x. (a) what is the equation of the profit function p(x) for this commodity? p(x) = (b) what is the profit on 35 units? p(35) = interpret your result. the total costs are less than the revenue. the total costs are more than the revenue. the total costs are exactly the same as the revenue. (c) how many fans must be sold to avoid losing money? fans
Answers: 1
Business, 22.06.2019 14:30, 20guadalupee73248
The face of a company is often that of the lowest paid employees who meet the customers. select one: true false
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Business, 22.06.2019 18:00, ferny5133
Which of the following is a characteristic that can be used to guide the design of service systems? a. services cannot be inventoried. b. services are all similar. c. quality work means quality service. d. services businesses are inherently entrepreneurial. e. even service businesses have internal services.
Answers: 2
Frank is lending $1,000 to sarah for two years. frank and sarah agree that frank should earn a 2 per...
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