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Julia invested 3000 at an annual interest rate of 5 percent from last year to this year there has been a 4 percent inflation rate after a year the purchasing power of her investment?

rose by 1 percent


Julia invested 3000 at an annual interest rate of 5 percent. From last year to this year there has been a 4 percent inflation rate. After a year the purchasing power of her investment .?

rose by 1 percent


How can one calculate the real interest rate, taking into account inflation?

To calculate the real interest rate, subtract the inflation rate from the nominal interest rate. The real interest rate reflects the true purchasing power of the money invested or borrowed after adjusting for inflation.


In 1960 the inflation rate was about 5.1. If you invested in a savings account with an annual interest rate of 4.9 what was the real growth rate of this investment?

A real "growth" of -0.0019%, approx.


How is the amount of interest earned on an investment calculated?

The amount of interest earned on an investment is calculated by multiplying the principal amount invested by the interest rate and the time the money is invested for. This formula is typically expressed as: Interest Principal x Rate x Time.


How much interest would you earn of a 30000 investment?

Depends on how you invested it and what rate of return that investment delivered.


How much interest is earned on the account?

A $5000 investment at an annual simple interest rate of 4.4% earned as much interest after one year as another investment in an account that earned 5.5% annual simple interest. How much was invested at 5.5%?


How can I find the interest payment on a loan or investment?

To find the interest payment on a loan or investment, you can use the formula: Interest Principal x Rate x Time. The principal is the amount of money borrowed or invested, the rate is the interest rate, and the time is the duration of the loan or investment. Plug in these values to calculate the interest payment.


Nature of investment decisions?

Investment decisions are made by investors and stockholders about how and where money will be invested. Most of the time investments are made in the interest of companies and retirement plans.


Why does interest on checking accounts increase with increasing inflation?

Example : you have Rs. 100 to spend you have invested in bank . the bank give you 5% interest so that now you will earn 105 Rs. on your investment. current inflation is 2% that means you are paying 2% and your bank gives you 5% so (5-2) 3% is your profit you are generating extra Rs. 3 on your investment in bank Now the inflation rate increases to 6 % and your bank still gives you 5% on the checking account while investment made in mutual fund gives you return of 8% than Bank (5%-6%)= Loss of 1% Mutual Funds (8%-6%)= Profit of 2% So to overcome effect of inflation and to stay in the competition with other investment and to regulate banking operation the bank will increase interest on checking account to keep investors investing in bank.


How is the interest rate usually measured?

The interest rate is typically measured as a percentage of the amount borrowed or invested, representing the cost of borrowing money or the return on an investment.


What are the problems that a company may encounter if it finds itself with excess of cash?

excess of cash will result in following problems: 1.loss of interest if cash were invested 2.loss of purchasing power during times of high inflation 3.security and insurance costs