Dean borrows $400 from Tim.  Tim wants to make a 7% real return on his money, so they both agree on a 7% stated interest rate paid next year. Dean and Tim did not anticipate any inflation, yet the actual inflation turned out to be 2% next year. In this case, what is Tim’s real rate of return?

Note: the answer should be typed.

Calculate inflation if real interest rate is 12% and nominal interest rate is 15%

Prices for fresh fruit went up 9% last year and 3% this year. What is the average inflation rate percentage for fresh fruit over the 2-year period? Enter your answer as a percentage rounded to the nearest tenth of a percent.

a nation has had higher inflation recently. Last year, a basket of goods cost 360 but this year that same basked cost 396. suppose the nation's institutions succeeded in getting inflation down 2%. what would the basket of goods cost next year? (the answer should be 367.2, but I dont know how to get there)

Automobile insurance policies (contracts) typically are issued every 6 months. Consider an actual case during the tail part of 2018 where a policy was worth approximately $649. In March of 2019 the issued policy is projected to be approximately $700. Note that these costs are somewhat high. What is the rate of inflation in these policies over this time period? 2.  Los Angeles, CA and Atlanta, GA (ATL baby!!!) are two of the most well-known cities in the U.S. These cities are also very large (with LA being the larger of the two). Given that the number of people in the labor force was 6,827,958 (LA) and 3,097,603 (ATL), and the number of people out of work for Atlanta was 110, 713 and for LA was 285,764, what was the rates of unemployment for these two cities for December 2018?   3.  Here are some data for numbers of people in the labor force for some cities in the U.S.: Columbia, SC (400,750); Jacksonville, FL (775,809); Charlotte, NC (1,343,634), and Charleston, SC (379,429). What…

In order to make up for the future loss in purchasing power. the rate at which you earn interest must be sufficiently higher than the anticipated inflation rate. True or false?

The nominal interest rate is 3% in the economy. Shawn is deciding to give loan to his friend at this rate.  The prevailing inflation rate is 2.5% Should Shawn give loan to his friend or not?

If inflation is currently 2.55% and a bank is lending money at 7.75% interest, what is the real interest rate the bank is earning on its loans?

If the nominal interest rate on a loan was 10 percent and the real interest rate was 8 percent, then the inflation rate during that time must have been: 9% 2% 1.25% 18%