Business, 16.03.2020 18:57 jacycooley

13) In which of the following situations would you prefer to be the lender? 13) A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 13 percent and the expected inflation rate is 15 percent. C) The interest rate is 4 percent and the expected inflation rate is 1 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent

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Answer from: anniejordan0412

C) The interest rate is 4 percent and the expected inflation rate is 1 percent.

Explanation:

Generally, a person would prefer to be a lender when the interest rate is higher than the expected inflation. The idea is to compensate the lender that fall in the value of money that will occur as a result of the fall in the value of money caused by the expected inflation. From the question, only situations (A) and (C) meet these criteria. But we have to choose one based on the criteria in the next paragraph.

Specifically, if a person is confronted with more than one situation to a be lender, he will prefer to be a lender under a situation where the weight of contribution of interest rate to the addition of interest and expected inflation is the highest. Given only (A) and (C) meet the first criteria, we can compute the weight of contribution of interest rate as follows:

For situation (A) – Weight of interest rate contribution = [9% × (9% + 7%)] = 0.56, or 56%

For situation (C) – Weight of interest rate contribution = [4% × (4% + 1%)] = 0.80, or 80%

Situation (C)’s weight of interest rate contribution of 80% is higher than the situation (A)’s weight of interest rate contribution of 56%, the person will prefer to be a lender under situation (C) where the interest rate is 4 percent and the expected inflation rate is 1 percent.

Answer from: Quest

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

Answer from: Quest

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation:

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13) In which of the following situations would you prefer to be the lender? 13) A) The interest rate...

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