What is the inflation-adjusted rate

Assignment Help Business Economics

Reference no: EM13771147

A friend borrows $930 today and promises to pay you back $1900 in 8 years. If inflation is expected to be 2.7% per year during this time, what is

a) the inflation-adjusted rate of return?_______ % per year

b) the real rate of return?_________% per

Reference no: EM13771147

Questions Cloud

New technology requirement that you have identified : Identify and analyze what you believe to be the most significant new technology requirements for the health care industry. Indicate how providers should approach the implementation of this new technology requirement that you have identified. Provide ..

Three broad types of industrial noise : List and briefly explain the three broad types of industrial noise. What are some psychological problems that are associated with excessive noise? How can these psychological problems affect employees on the jobsite?

What is best way to allocate the expenditure : Use the following to answer the questions below: z is the marginal utility per dollar, x is the amount spent on product A, and y i the amount spent on product B. Assume MUA = z = 10 x and MUB = z = 21 2y. Assume that the consumer has $10 to spend on ..

Use the concepts of elasticity to maximize profit : Price elasticity of demand is an important tool for managers in a selling environment in decision what to put on sale. Discuss how managers of over the counter health care products could use the concepts of elasticity to maximize profit.

What is the inflation-adjusted rate : A friend borrows $930 today and promises to pay you back $1900 in 8 years. If inflation is expected to be 2.7% per year during this time, what is the inflation-adjusted rate of return?_______ % per year

What benefit will this new technology provide : Seek out and locate a web site that speaks to the subject of non-lethal weapons. List three types of non-lethal weapons still in experimental phase. Of the three, which one do you feel will be most likely to be utilized in the near future? What b..

Problems consider a market containing four identical firms : For all problems consider a market containing four identical firms, each of which makes an identical product. The inverse demand for this product is P = 100?Q, where P is price and Q is aggregate output. The production costs for firms 1, 2, and 3 are..

Dalton law of partial pressure : Explain Dalton's law of partial pressure. Does water vapor conform to Dalton's law? What are some other sources of pressure hazards? How are they created?

3-phase for wire balanced system : Write down the relationship between peak and RMS values of a voltage. What are the peak and RMS values of the mains voltage in Australia?

User Account

All Pages