If the nominal interest rate is 20% per year, how much money can an individual borrow today if she wants to repay $100 in one year?
A) $80.00
B) $83.33
C) $120.00
D) $78.00
E) $121.00
B
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Which of the following statements is correct?
a. Purchasing Power Parity occurs when nominal interest rates are the same in two countries. b. Purchasing Power Parity means that the nominal exchange rate is 1 to 1. c. Purchasing Power Parity means that two countries have the same standard of living. d. Purchasing Power Parity means that the real exchange rate equals 1 to 1.
From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
Each of the following is an industrial country except
A. Belgium. B. Germany. C. Vietnam. D. Sweden.
One of the management groups is arguing for a price reduction as a way to sell more gallons and increase income. Is this a good suggestion?
What will be an ideal response?