Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent...
Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.62 percent. What is the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest?
Homework Answers
Add Answer to:
Imagine you borrow $600 from your roommate, agreeing to pay her
back $600 plus 7 percent...
Imagine you borrow $800 from your roommate, agreeing to pay her back $800 plus 11 percent...
Imagine you borrow $800 from your roommate, agreeing to pay her back $800 plus 11 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.08 percent. What is the total dollar amount you will have to pay her back in a year? What approximate percentage of the interest payment is the result of the real rate of interest?
en Sans U A A Wrap Text General $ % E. Merge & Center Condition Formatt...
en Sans U A A Wrap Text General $ % E. Merge & Center Condition Formatt G H Interest Rates: Imagine you borrow $500 from your roommate, agreeing to pay her back $500 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.25 percent. What is the total dollar amount you will have to pay her back in a year? What percentage of the interest payment is the result...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she can fin...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she can find hundreds of items priced at exactly $1. Tyra has $230 to spend and is thinking of going on a shopping spree at Dollar Barrel, but she is also thinking of investing her money. (Ignore all sales and income taxes.) a. Suppose the expected rate of inflation is 1% (so next year, everything at Dollar Barrel will cost $1.01) and Tyra can earn...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she can find hundreds of items priced at exact . Tyra has $190 to spend and is thinking of going on a shopping spree at Dollar Barrel, but she is also thinking of investing her mon Ignore all sales and income taxes.) a. Suppose the expected rate of inflation is 1% (so next year, everything at that she invests. Approximately what real rate of interest...
You lend $1,154 to a friend and he agrees to pay you back next year plus...
You lend $1,154 to a friend and he agrees to pay you back next year plus he will pay you interest of 6.91%. If the inflation rate is 2.34%, then in real terms how much extra money will you have after your friend pays you back? Enter a number rounded to two decimal places with no other characters.
You lend $1,128 to a friend and he agrees to pay you back next year plus...
You lend $1,128 to a friend and he agrees to pay you back next year plus he will pay you interest of 7.93%. If the inflation rate is 2.41%, then in real terms how much extra money will you have after your friend pays you back? Enter a number rounded to two decimal places with no other characters.
2.You borrowed $1,500 for one year, and agreed to pay back $1,680. At the outset you...
2.You borrowed $1,500 for one year, and agreed to pay back $1,680. At the outset you expected the inflation rate to be 2% over the period of the loan, but it ended at 4%. In this case, Question options: the nominal interest rate was 1.12%, the expected real interest rate was 2%, the actual real interest rate ended at 4%. the nominal interest rate was 12%, the expected real interest rate was 14%, the actual real interest rate was 16%....
You borrow 10,000 from a loan company. The company wants you to pay it back in...
You borrow 10,000 from a loan company. The company wants you to pay it back in equal monthly installments in 10 years under a monthly interest rate of i%. If the equivalent future amount of your payments at the end of year 10 is 33,000, what is the nominal annual rate?
Lyon, Tigah, Barry, and Dorthe each borrow $3,500 and plan to pay it back over 2 years at 7% interest. 3. , What is the total interest that each one pays over the life of the loan if the interest...
Lyon, Tigah, Barry, and Dorthe each borrow $3,500 and plan to pay it back over 2 years at 7% interest. 3. , What is the total interest that each one pays over the life of the loan if the interest rate is compounded quarterly? [20] .Lyon pays back his loan in one payment at the end of 2 years. " Tigah pays back her loan with annual interes t payments and the principal payment at the end of 2 years....
You just signed a business contract with one of your clients. The client will pay you...
You just signed a business contract with one of your clients. The client will pay you the equivalent of $75,000 of today's money a year for five years for the service you will provide. You anticipate the general inflation rate over this period to be 3%. If your desired inflation-free interest rate (real interest rate) is to be 4%, what is the worth of the fifth payment in present dollars? Assume the client will pay the consulting fee at the...
en Sans U A A Wrap Text General $ % E. Merge & Center Condition Formatt G H Interest Rates: Imagine you borrow $500 from your roommate, agreeing to pay her back $500 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.25 percent. What is the total dollar amount you will have to pay her back in a year? What percentage of the interest payment is the result...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she can find hundreds of items priced at exactly $1. Tyra has $230 to spend and is thinking of going on a shopping spree at Dollar Barrel, but she is also thinking of investing her money. (Ignore all sales and income taxes.) a. Suppose the expected rate of inflation is 1% (so next year, everything at Dollar Barrel will cost $1.01) and Tyra can earn...
Nominal and real rates Tyra loves to shop at her favorite store, Dollar Barrel, where she can find hundreds of items priced at exact . Tyra has $190 to spend and is thinking of going on a shopping spree at Dollar Barrel, but she is also thinking of investing her mon Ignore all sales and income taxes.) a. Suppose the expected rate of inflation is 1% (so next year, everything at that she invests. Approximately what real rate of interest...
You lend $1,154 to a friend and he agrees to pay you back next year plus he will pay you interest of 6.91%. If the inflation rate is 2.34%, then in real terms how much extra money will you have after your friend pays you back? Enter a number rounded to two decimal places with no other characters.
Lyon, Tigah, Barry, and Dorthe each borrow $3,500 and plan to pay it back over 2 years at 7% interest. 3. , What is the total interest that each one pays over the life of the loan if the interest rate is compounded quarterly? [20] .Lyon pays back his loan in one payment at the end of 2 years. " Tigah pays back her loan with annual interes t payments and the principal payment at the end of 2 years....
Most questions answered within 3 hours.
-
1. The following reaction forms 15.8 g of Ag(s):
2Ag2O(s)→4Ag(s)+O2(g) What total volume of gas forms...
asked 2 minutes ago -
In Java, if you wanted to get the pixel that is in the
bottom-right hand corner...
asked 11 minutes ago -
After receiving an answer that contains one or more
counterclaims, a plaintiff files a reply that...
asked 18 minutes ago -
From the end of a string (whose other end is firmly attached to
the ceiling) we...
asked 26 minutes ago -
When a firm is in an increasing-cost industry, a decrease in
demand will result in economic (Click...
asked 55 minutes ago -
1. Explain what the advantages are of having a System on a Chip
rather than separate...
asked 54 minutes ago -
A turbine is spinning freely at 3750 rpm. It takes 10 min to
coast to a...
asked 58 minutes ago -
home / study / business / operations management / operations
management questions and answers / eastman...
asked 1 hour ago -
Q1. In a DC machine, if the field winding is replaced by
permanent magnets, can the...
asked 1 hour ago -
a.) How is a monopolistic firm different from a perfectly
competitive firm? Which firm will have...
asked 1 hour ago -
The following reagents are available:
Reagent 1: pKa = 5
Reagent 2: pKa = 6.75
Reagent...
asked 1 hour ago -
A company has entered into a business agreement with a business
partner for managed human resources...
asked 1 hour ago