You are a saver, and you deposit your savings in your savings account at your local bank. The bank promises a nominal interest rate on your savings of 2.10%. You expect an inflation rate of 1.25% over the next year. Based on this information, what is the real interest rate that you want to receive? 1.25% 0.85% 2.10% 3.35% -0.85%

The nominal interest rate is 10​%. The inflation rate is 2​%.   The real interest rate is equal to

Mary will earn $42,544 this year and $21,839 next year. The real interest rate is 15% between this year and next year; she can borrow or lend at this rate. She has no wealth at the start of this year and plans to finish next year having consumed everything she possibly can. She would like to consume the same amount this year as next year. The inflation rate is 0%. How much should Mary save?

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%

10

Assume you have won a lottery prize of $5,000, which works out great since you want to buy a new gaming PC that costs $5,500. You decide to save the lottery winnings for one year by purchasing a bank CD with one year until maturity. The interest rate on your deposit is 12% and inflation is expected to be 8% over the next year. You plan to work part-time to make up any shortfall in your savings covering the cost of the gaming PC one year from now. a.  How much money will you have in your bank account at the end of one year? b. What is the real interest rate you expect to earn on your deposit over the next year?  c. Will you have enough money from the savings to buy the PC next year? d. If your answer to c. is no, how many hours of work @ $15/hour will be required to make up the shortfall?

Quickly answer please

Required information In wisely planning for your retirement, you invest $18,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real return of 10% per year when the inflation rate averages 2.8% per year. How many future dollars will you have in the account immediately after your last deposit? You will have $ |future dollars in your account immediately after your last deposit.

Suppose that the investment function is I = 3,500 − 100r, where r is the real interest rate (in percent). If the nominal interest rate is 12 percent and the inflation rate is 4 percent, then total investment will be:

Suppose a person works hard at a job after graduation and after her first year, her effort is rewarded with a 3% raise when the average wage increase in her company is 2%. Later, the government releases its inflation report and says that the inflation rate is 7%.   Given this information, which of the following is true regarding her standard of living?   Her standard of living has improved because the 3% raise is enough to offset the average rise in prices.   Her standard of living did not improve because the purchasing power of her income is less than it was last year.   Her standard of living has remained the same because the rate of inflation does not influence purchasing power.   Her standard of living has increased by the amount of inflation, namely, 7%.