Q: What is the real interest rate?
A: Real interest rate is an interest rate which removes the effect of inflation and reflects the real…
Q: Define the term an amortized loan?
A: An amortized loan is a form of loan with scheduled, regular payments that relate to both the…
Q: Ellena's pension was $10 per period in 2033. What amount of money in the base year would give her…
A: Interpretation of Price Indices: Rs 100 in 2033 hold the same purchasing power as Rs. 90 in 2031.…
Q: Your paycheque for the year is higher this year than last year. Does that mean that your real income…
A: In an economy, a paycheque refers to the amount of compensation a worker gets in terms of money when…
Q: suppose a family income increases by 3 percent at the same time that inflation is 0 percent what…
A: If an income of a family increases by 3% but the inflation rate is 0% i.e. unchanged. This implies…
Q: Interest Rate R Investment
A: The Keynesian economics would result in the demand side economics which determines the equilibrium…
Q: f an insured purchases an Annuily from which income is received, the insured is the receiver…
A: Answer is given below
Q: Find the consumption when savings are 94 and the income is 110
A: A consumer either spends income on consumption of goods and services, or saves income.
Q: What is the Sinking-Fund Factor?
A: The sinking fund factor is the calculation that tells the investor how much of an annuity payment…
Q: Dennis is planning to invest his money to earn more. He is willing to take a little risk by buying…
A: Dennis is want to buy income earning assets and he is ready to bear less risk . Then following…
Q: 7. Net capital gains from the sale of property is a part of domestic factor income.
A: Domestic factor income considers the compensation received by domestic employees and the operating…
Q: Calculate the value of APS when the savings are given as 62 and the income is 8
A: Accordingly the information in the question, Savings are = 62 Income = 8 APS = ?
Q: DIFFERENCE BETWEEN Debt and equity markets
A: Debt and equity markets are markets where firms borrow capital and investors lend capital.
Q: Repayment of loan with interest is a capital expenditure True/False
A: # The upgradation for maintenance of physical assets is counted as capital expenditure.
Q: Below is some data for Jane. Year 1: pr 15, X 20, py = 25, Y = 30 Year 2: pr 6,Py 30, Income = 1050…
A: Year 1 Pr (X) + Py (Y ) is less than M Putting the values we get , 15(20) + 25(30) = 300 + 750 =…
Q: What is the Decision Rule for simple Investments?
A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…
Q: The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly…
A: The difference b/w the effective-interest rate(ER) and the nominal-rate(NR) is that the NR does not…
Q: Which of the following is NOT a retirement plan? a) 401k plan b) 529 plan c) IRA plan d) 501(c)…
A: Retirement planning is the process of securing life after retirement when the person will be unable…
Q: how to calculate present value
A: The current value of a future sum of the amount of stream of the given cash flows in a specified…
Q: How might deflation set off further delation
A: A deflationary spiral can be defined as a "downward price reaction to an economic crisis leading to…
Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old.…
A: The age of tom = 20 years Total working-age = 50 -20 = 30 years Total not working age = 80 - 50 = 30…
Q: Explain the term Present Value of Perpetuities?
A: Answer - Present Value of Perpetuities - It is the cash flow which continue indefinitely. It is…
Q: Are there specific experiences, education, knowledge, and skills required for an effective budget…
A: Education and experiences (mostly preferred): Bachelors degree MBA or professional certificate can…
Q: Discuss the importance of long range planning for retirement
A: Financial planning is highly important in order to determine the financial independence of the…
Q: What is the use of inflation-adjusted figures?
A: Inflation is the cost of goods and services rising across the economy. Because inflation is not a…
Q: Which healthcare benefits retirees get differ from those provided by pensions?
A: A pension plan is financed by the business, while a retirement is funded by the worker. (A few…
Q: If the price index rises from 100 to 120, the purchasing power value of the dollar Multiple Choice…
A: Price index shows the change in general price level over a period of time. Here, price index changes…
Q: Is the dealing with the effects of interest within an interest- period, is very complicated…
A: Interest rates determined by the central bank in their territory, By adjusting repo rate and reverse…
Q: What is the base period?
A: Economics studies how scarce resources are allocated in a manner that most of the human needs are…
Q: What is the relation between income and life expectancies?
A: The relationship between income and life expectancies can be best explained with the help of the…
Q: The value of net factor income from abroad can never be 0 True /False
A: The NFIA or net factor income from abroad is given as the difference between the factor income from…
Q: Calculate the value of APS if Savings is $320 million and income is $420 million
A: The information being given to us is as follows:- Savings = $320 million Income = $420 million We…
Q: Using practical examples, explain the difference between transfer payments and government purchases.
A: Government purchases vs transfer payments
Q: When do you release a retentiong guarantee/bond?
A: A retention bond is a kind of performance bond that protects the customer in the scenario when the…
Q: In a(n). as either a fixed dollar or a percentage-of-earnings amount linked to years of seniority in…
A: The labor market is a place where the laborers will be willing to sell their labor power at the…
Q: How can we determine the real (inflation-free) rate of return for a bond?
A: Real rate of return for a bond is a return on bonds, which is adjusted for inflation. Formula:
Q: It is the number of individual buy orders and the total number of shares that wish to buy.
A: It denotes the number of shares of a security that investors are prepared to buy at a certain offer…
Q: The future value of a dollar as the interest rate increases and the longer the money remains…
A: The relationship between future value and the interest rate and time is positive i.e.. direct. It…
Q: How is an Effective Interest Rate calculated?
A: The effective rate of interest is an important concept in economics. The effective rate of interest…
Q: Define interest rate.
A: The price paid by the lender for the use of assets expressed as a percentage of the principal is…
Q: Discuss how the present value of a future income payment is calculated.
A: The present value measures the current value of a future sum of money, given a specified interest…
Q: Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need…
A: Formula - A=P(1+r/n)nt A is the value at retirement P is the principal, which is the $4,000…
Q: What Is the tern Market Interest Rates?
A: The market interest rate is the interest rate which prevails in the market on the deposits and other…
Q: The future value of a dollar as the interest rate increases and money remains invested the longer…
A: Interest rate: It is the amount charged by a borrower on the amount loaned.
Q: What is FOREX rate?
A: The forex is a type of market. Usually, the market is a place where the buyers and sellers interact…
What is meant by an asset’s unadjusted basis? Adjusted
basis?
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- For credit card accounts, the interest rate is normally expressed as the Annual Percentage Rate. This interest rate is considered effective. a True b FalseDennis is planning to invest his money to earn more. He is willing to take a little risk by buying incomeearning assets to help him earn more. However, he wanted to make sure that when he needs the money he invested, he will be able to get part of it immediately. What type of investment would you advise Dennis to buy? Why?Fill the correct term