how much would the nominal rate (%) of the return on the bank account have to be? Explain with calculations and conclusion

Q: With a salary of $43,300, a raise of 2.4%, and an inflation rate of 2.8%, then this person's real…

A: The nominal raise:Nominal raise=Current salary x Raise percentageGiven a salary of $43,300 and a…

Q: After graduating from college in 2020, Art Major's starting salary is $40757.0040757.00. Suppose Art…

A: The Consumer Price Index (CPI) is a measure used to track changes in the average price level of…

Q: The price of oil is rising at 10% per year while inflation is just 2.5% per year. If the current…

A: For an individual who wants to analyse for annual growth rate of their investment, CAGR, i.e. a…

Q: In Zimbabwe the rate of inflation hit 90 sextillion percent in 2009, with prices increasing tenfold…

A: Hyperinflation, occurring when inflation reaches extreme levels and acce­lerates, is characterize­d…

Q: If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of…

A: Inflation is the general increase in price level.There are different levels of inflation.Inflation…

Q: The cost of a NYC studio apartment was $1,200 in the year 2000. By 2022 the same apartment would…

A: Inflation rate is the rate at which the average general price level of goods and services rises over…

Q: Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: In the present year, Mr. Dela Cruz noticed that the kilo of rice he always bought now costs Php…

A: The general level of pricing for goods and services during a given time period, often a year, is…

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

A: Meaning of Inflation: Inflation generally arises when there is an excessive increase in the level…

Q: The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows…

A: The inflation rate is the percentage increase in the general price level of goods and services in an…

Q: rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of…

A: Inflation benefit:Inflation benefit can be calculated as follows:Inflation benefit = Loan amount (…

Q: The first year Jeff paid for a membership at his gym, the fee was $440.00. He renewed his membership…

A: Here, it is given that Jeff paid his membership fees three times and nominal value changes…

Q: “The cost of tuition is rising at a faster rate than family income or student financial aid. In…

A: The objective approach and the subjective approach are two different methods of presenting…

Q: Suppose a country is experiencing an annual inflation rate of 5%. The average cost of production for…

A: Inflation refers to the rate at which the general level of prices for goods and services rises,…

Q: If you were to learn that a bottle of Gatorade increased in size from 2009 to 2010 by 100 percent,…

A: The phenomenon of the rising price level in the economy is known as inflation. Inflation is the…

Q: Find the inflation rate in the economy if the real interest rate is 4% and Nominal Interest rate is…

A: # in an economy we can easily find the prevailing inflation rate by using the fishers equation which…

Q: You open a savings account with your local bank and the bank pays you a nominal interest rate of 2%,…

A: The real interest rate is calculated as:Real interest rate = Nominal interest rate - Inflation rate…

Q: Let's suppose if you have $200,000 in a bank term account. You earn 5% interest per annum from this…

A: When the interest rate is 5 percent, the change in the amount after 1 year will be 5 percent higher…

Q: Dean borrows $400 from Tim.  Tim wants to make a 7% real return on his money, so they both agree on…

A: Inflation rate and rate of return: The inflation rate determines the growth rate of the overall…

Q: The average annual cost(tuition, fees, and room and board) at four-year private universities rose…

A: CPI (Consumer Price Index) measures the average change in prices of goods and services bought by…

Q: What was the approximate value of the inflation rate in Q4 of 2021?

A: Price index shows the living cost and represents the average change in general price level  during…

Q: Your bank charges him an interest rate of 4% over the next year. the real the beginning of the loan…

A: This rate refers to the increase in prices for commodities and amenities over time that causes a…

Q: Suppose that all prices rise at the same proportional (inflation) rate of 19% per year. For an item…

A: Hyperinflation is the decline of a currency's buying power over time. The rate at which a basket of…

Q: ..... actual dollars: DA. $1,007,446 OB. $539,644 DC. $731,059 O D. $445,603 a real dollars: OA.…

A: In case of actual dollar the interest rate is not adjusted for inflation.Calculating the amount in…

Q: a1. You learn on the business channel that inflation was about 0.8% last month.  Assume this rate is…

A: Since you have not mentioned which question have to answer. So, I am answering question “a1”.

Q: At the beginning of 2007 the CPI was 154.  At the beginning of 2008 the CPI was 169.  What is the…

A: Given CPI in 2007 = 154 CPI in 2008 = 169 The following formula wil be used to calculate rate of…

Q: Sarah wants to make an 8% real return on a loan that she is planning to make, and the expected…

A: Inflation is the increase in price level over the year.  Inflation rate is the measure of inflation…

Q: Assume the inflation rate is 100% per year and the nominal rate of interest is 700% per year. (This…

A: In the realm of economics, inflation, nominal interest, and real interest form a network of…

Q: Goods costing $27.10 at the beginning of the year 1940 cost $176.52 at the beginning of the year…

A: Inflation is the general increase in the price level of all goods and services in the market. Some…

Q: If you borrowed $100,000 for one year at an interest rate of 10% and inflation was 20%, then: The…

A: According to the Fisher equation,Real interest rate = Nominal interest rate - Inflation rate

Q: The government has released the latest retail price index which suggests inflation was 1.62%. A…

A: As measured by the consumer price index (CPI), the change in the price of a basket of goods and…

Q: **See Instructions For Solving @ Bottom** The contractor's construction expenses and owner's…

A: In the payment process in the construction business, the total payable amount depends on various…

Q: If the CPI increased from 80 to 84, the rate of inflation is: Group of answer choices 4.7% 10% 4% 5%

A: CPI: It is used as a measure of the aggregate price level in an economy.

Q: You lend $1,012 to a friend and he agrees to pay you back next year plus he will pay you interest of…

A: Given:Principal=$1,012Rate of interest=7.25%Period=1 year

Q: Automobile insurance policies (contracts) typically are issued every 6 months. Consider an actual…

A:

Q: Interest Rates Suppose that you make a loan of $1,500 to your friend at a rate of 10% interest…

A: The relationship between real interest rate, nominal interest rate and inflation rate is given by,…

Q: The average rate of inflation in the United States in the last 100 years is approximately 3.26%. In…

A: 100 year's average inflation = 3.26% Last year inflation = 8.5% Present worth of a future amount or…

Q: The nominal interest rate is 3% in the economy. Shawn is deciding to give loan to his friend at this…

A: # If there is inflation in the economy, we can't have a good picture about interest rates by just…

Q: Task 5: Suppose, in the base year, a typical market basket purchased by an urban family cost $250.…

A: We may quickly determine the CPI index and inflation rate for various time periods just by carrying…

Q: If the nominal interest rate on a loan was 10 percent and the real interest rate was 8 percent, then…

A: The term "real interest rate" refers to the market interest rate that has been adjusted for…

Q: There is a persistent fear that there will be a high level of deflation. Many economists warn that…

A: Meaning of Deflation and Inflation: Deflation refers to the downfall in the total spending of the…

Q: Consider a labor market where the matching function UV is given by H (U,V) = A, where A=0.5. U+V'…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The price of natural gas has been zooming up from $4 per MMBtu on December 31, 2021 to $8 on pril…

A: Given that, The price of natural gas has been zooming up. Price on Dec. 31, 2021 = $4 MMBtu Price on…

Q: Hyperinflation has struck your country! Over the past year the price of a loaf of bread has…

A: According to the question, it is given that :Hyperinflation has struck the country.The price of a…

Q: Assume you have won a lottery prize of $5,000, which works out great since you want to buy a new…

A: Answer is given below Explanation: