subject
Business, 30.09.2019 18:10 wolfgirl10000

Suppose alyssa is a sports fan and buys only baseball caps. alyssa deposits $1,000 in a bank account that pays an annual nominal interest rate of 5%. assume this interest rate is fixed—that is, it won't change over time. at the time of her deposit, a baseball cap is priced at $10.00. initially, the purchasing power of alyssa's $1,000 deposit is baseball caps. for each of the annual inflation rates given in the following table, first determine the new price of a baseball cap, assuming it rises at the rate of inflation. then enter the corresponding purchasing power of alyssa's deposit after one year in the first row of the table for each inflation rate. finally, enter the value for the real interest rate at each of the given inflation rates. hint: round your answers in the first row down to the nearest baseball cap. for example, if you find that the deposit will cover 20.7 baseball caps, you would round the purchasing power down to 20 baseball caps under the assumption that alyssa will not buy seven-tenths of a baseball cap. annual inflation rate 0% 5% 10% number of caps alyssa can purchase after one year real interest rate when the rate of inflation is less than the interest rate on alyssa's deposit, the purchasing power of her deposit over the course of the year.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 03:30
Eagle sporting goods reported the following data at july ​31, 2016​, with amounts adapted in​ thousands: ​(click the icon to view the income​ statement.) ​(click the icon to view the statement of retained​ earnings.) ​(click the icon to view the balance​ sheet.) 1. compute eagle​'s net working capital. 2. compute eagle​'s current ratio. round to two decimal places. 3. compute eagle​'s debt ratio. round to two decimal places. do these values and ratios look​ strong, weak or​ middle-of-the-road? 1. compute eagle​'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagle​'s current ratio. ​(round answer to two decimal​ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagle​'s debt ratio. ​(round answer to two decimal​ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios look​ strong, weak or​ middle-of-the-road? net working capital is ▾ . this means ▾ current assets exceed current liabilities current liabilities exceed current assets and is a ▾ negative positive sign. eagle​'s current ratio is considered ▾ middle-of-the-road. strong. weak. eagle​'s debt ratio is considered ▾ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.
Answers: 3
question
Business, 22.06.2019 11:40
During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million
Answers: 1
question
Business, 22.06.2019 11:50
Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.
Answers: 2
question
Business, 22.06.2019 17:00
Serious question, which is preferred in a business? pp or poopoo?
Answers: 1
You know the right answer?
Suppose alyssa is a sports fan and buys only baseball caps. alyssa deposits $1,000 in a bank account...
Questions
question
Mathematics, 12.03.2021 05:10
question
Mathematics, 12.03.2021 05:10
Questions on the website: 13722363