Suppose that the interest rate is 2 percent
WebSuppose that the annual interest rate is 2.0 percent in the United States and 8.0 percent in Germany, and that the spot exchange rate is $1.20/€ and the forward exchange rate, with one-year maturity, is $1.19/€. WebApr 8, 2024 · Suppose the interest rate is 10.2 % APR with monthly compounding. What is the present value of an annuity that pays $ 119 every 6 months for 6 years? Question …
Suppose that the interest rate is 2 percent
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WebSuppose that $17,943 is invested at an interest rate of 6.1% per year, compounded continuously. a) Find the exponential function that describes the amount in the account after time t, in years. b) What is the balance after 1 year? 2 years? 5 years? 10 years? c) What is the doubling time? a) The exponential growth function is P (t) = . WebTherefore, the real interest rate is 2%. Step 2: Explanation for part (b) When nominal interest rate is 6%, and real interest rate is 1%, the inflation premium is 5%, as calculated below: Nominal Interest Rate = Real Interest Rate + Inflation Premium 6 = 1 + Inflation Premium Real Interest Rate = 6 - 1 = 5 %
WebBusiness. Economics. Economics questions and answers. Suppose the nominal interest rate is 6.00 percent a year, the tax rate is 40.0 percent, and the inflation rate is 3.00 percent per year. What is the real after-tax interest rate? WebOct 23, 2024 · Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answer as a whole number. In part b, round your …
WebANSWER 2: The current short-run equilibrium value for Real GDP is Y = 12,500 and the price level is p = 625. ANSWER 3: The percent change in the price level as we move from the current (short-run) price level to the new (long-run) price level is: -12.8% WebOct 23, 2024 · Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real interest rate? See answer
WebSuppose that 2-year interest rates are 5.0% in the United States and 1.02% in Japan and that spot exchange rate is JPY98.53 = USD1. Suppose that 1 year later, interest rates are 2.76% in both countries, while the value of the yen has appreciated to JPY95.90 = USD1. a.
WebFind the simple interest owed for the use of the money. Assume 365 days in a year. P = $5000 r = 2.5% t = 9 months the simple interest owed for the use of the money is _____6,125_________________. 8. (8.3.9) The principal P is borrowed at a simple interest rate r for a period of time t. bann thai restaurant sebring ohioWebQuestion: Suppose that the interest rate is 2 percent. Instructions: Round your answers to 2 decimal places. a. What is the future value of $100 five years from now? How much of the … poulan piston kitWebSuppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with … poulata kefaloniaWebApr 28, 2015 · (1) for each percentage point that inflation rises relative to the Fed’s target, assumed to be 2 percent; or (2) for each percentage point that that output rises relative to its... banna meaning kannadaWebSuppose that 2-year interest rates are 5.0% in the United States and 1.02% in Japan and that spot exchange rate is JPY98.53 = USD1. Suppose that 1 year later, interest rates are … bann siaWebSuppose that the annual interest rate is 2.0 percent in the United States and 8.0 percent in Germany, and that the spot exchange rate is $1.20/€ and the forward exchange rate, with … bann6WebApr 15, 2024 · Source: Jacob Boomsma / iStock via Getty Images 50. Alaska > State tax burden: 2.2% of avg. income > State tax collections per capita: $1,438 (the lowest) > State … bann thai asian tucson