If the current inflation rate is 2.2% and you are earning a real rate of return...
If the current inflation rate is 2.2% and you are earning a real rate of return on investment of 3.8%, then the nominal rate on this investment is closest to (please use the formula; NOT the approximation):
6.8% 6.08% 6.2% 6.0%
Homework Answers
(1+real rate)=(1+nominal rate)/(1+inflation rate)
(1+0.038)=(1+nominal rate)/(1+0.022)
1+nominal rate=(1.038*1.022)
nominal rate=(1.038*1.022)-1
=6.08%(Approx).
Add Answer to:
If the current inflation rate is 2.2% and you are earning a real
rate of return...
An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2...
An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent. What was the real return on the investment? 13.03% 8.22% 10.31% 9.13% 7.59%
If you earn a real rate of return of 2% and inflation is 4%, what is...
If you earn a real rate of return of 2% and inflation is 4%, what is your nominal rate of return? (to 2 decimal places)
If you earn a real rate of return of 2% and inflation is 4%, what is...
If you earn a real rate of return of 2% and inflation is 4%, what is your nominal rate of return? (to 2 decimal places)
Assume the real rate of return is 1.06% and the inflation rate is 3.29%. Find the...
Assume the real rate of return is 1.06% and the inflation rate is 3.29%. Find the nominal rate of return using the exact formula. Answer Format: Percentage Round to: -2 decimal places (Example: 0%, % sign required. Will accept decimal format rounded to 0 decimal places (ex: 0))
Assume the nominal rate of return is 9.78% and the inflation rate is 2.82%. Find the...
Assume the nominal rate of return is 9.78% and the inflation rate is 2.82%. Find the real rate of return using the exact formula.
Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current rate...
Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current rate of inflation is 3.1 percent. What is the nominal rate of return on these bonds? Please show work.
If the rate of inflation is 5.7 %, what nominal interest rate is necessary for you...
If the rate of inflation is 5.7 %, what nominal interest rate is necessary for you to earn a 2.2 % real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is ____%. (Round to two decimal places.)
Can you please help me figure out how the answer is B using a formula. 14....
Can you please help me figure out how the answer is B using a
formula.
14. Over the last 5 years, the average nominal rate of return of 90 day Treasury bills was 1.02%, Saltine Co.'s average nominal stock return was 8.9%, large company stocks average nominal return was 15%, and the inflation rate averaged 2.7%. The real rate of Saltine's stock return is A) 6.8%. B) 6.0%. C) 5.1%. D) 4.3%. Answer: B
You made an investment over the past year, and your nominal return was 24.2%. Over the same year, the rate of inflation...
You made an investment over the past year, and your nominal return was 24.2%. Over the same year, the rate of inflation was 2.3%. What was the real rate of return for this investment?
Assume the nominal rate of return is 5.31% and the real rate is 3.36%. Find the...
Assume the nominal rate of return is 5.31% and the real rate is 3.36%. Find the inflation rate of return using the exact formula.
Can you please help me figure out how the answer is B using a
formula.
14. Over the last 5 years, the average nominal rate of return of 90 day Treasury bills was 1.02%, Saltine Co.'s average nominal stock return was 8.9%, large company stocks average nominal return was 15%, and the inflation rate averaged 2.7%. The real rate of Saltine's stock return is A) 6.8%. B) 6.0%. C) 5.1%. D) 4.3%. Answer: B
Most questions answered within 3 hours.
-
Bob is gambling in the casino. The probability that he will win
nothing is 0.2. The...
asked 37 minutes ago -
A free electron and a free proton are exactly 0.70 cm apart.
A)
Find the magnitude...
asked 43 minutes ago -
Identify and Describe the major sources of U.S law. Provide a
sport-related example of each.
asked 1 hour ago -
NASA's Ames Research Center in Mountain View, California, houses
a 20g centrifuge used to conduct research...
asked 2 hours ago -
I want a python code using recursion ONLY.
I cannot use any loops, dictionaries or modules....
asked 2 hours ago -
Tobin Supplies Company expects sales next year to be $450,000.
Inventory and accounts receivable will increase...
asked 2 hours ago -
Give the relative rates for the following with a neighbor at your
desk
PH3(g) to P4(g)...
asked 3 hours ago -
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 3 hours ago -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 3 hours ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 4 hours ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 5 hours ago -
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 5 hours ago