Given the anticipated rate of inflation (i) of 1.7% and the real rate of interest (R) of 1.4%, find the nominal rate of
interest (r).
What will be an ideal response?
r = R + i + Ri
r = .014 + .017 + (.014 )(.017 )
r = .031 + .000238 = .031238
r = 3.12%
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A. Disclosure of Key Terms Regulation. B. Creditors' Disclosure Regulation. C. Regulation Z. D. Regulation Y.
______, when used in the right way, could actually support intrinsic or inner motivation.
A. Social motivation B. Extrinsic motivation C. Fear motivation D. Achievement motivation
The proposals that either meet company strategic goals or produce the minimum rate of return set by management will receive serious review in the preliminary screen process
Indicate whether the statement is true or false
Jacobs Company issued bonds with a $300,000 face value on January 1, Year 1. The bonds were issued at 102 and carried a 5-year term to maturity. They had a 9% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation?
A. Increase liabilities by $1,200, decrease assets by $25,800, and decrease equity by $27,000 B. Decrease both assets and stockholders' equity by $2,700 C. Decrease equity by $25,800, decrease liabilities by $1,200, and decrease assets by $27,000 D. Decrease both assets and stockholders' equity by $25,800