Determine what is the real rate of return

Assignment Help Econometrics

Reference no: EM13218199

An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (=im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 2.7% annually.

Reference no: EM13218199

Questions Cloud

What circumstances deceit is allowable : How do you determine when and under what circumstances deceit is allowable? What is the criteria that must be met?

Who are pure complements in production with raw materials : Why are most labor unions--whose constituents receive wages substantially above the minimum wage strong supporters of the minimum wage Why might unions composed of skilled workers who are pure complements in production with raw materials produced

Write a program to genrate a square wave : assuming XTAL=11.0592 MHz,write a program to genrate a square wave of 20 Hz frequency on pin2.3?

Why is quality a difficult term to define : Why is quality a difficult term to define. how can we improve our understanding of quality?

Determine what is the real rate of return : An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (=im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 2.7% annually.

Use the fourier series analysis integral to compute : Draw a labeled sketch of x(t) over a few periods: be careful, make sure you follow the exact definition of x(t)

Difficult for an elected office-holder to prove : Why is it difficult for an elected office-holder to prove he or she has any specific mandate from the people to do any particular thing?

Calculate optimal amount of food and clothing consumption : Using the Lagrangian Multiplier method, solve the consumer's utility maximization problem to derive the consumer's demand curves for both food and clothing as a function of prices and income. Is clothing a normal good.

Explain why is its accuracy so important : How is it is prepared? Why is its accuracy so important? How managers can use the cash budget as a monitoring and control tool?

User Account

All Pages