Answer:
How much money would you need to invest in Investment B today for it to be worth as much as Investment A 15 years from now
325.266.310,1
Explanation:
n=15*12
n=180
FV=A( 1 + i )^ n -1 / i
FV=1500( 1 + 0,06)^ 180 - 1 / 0,06
FV= 897,395,025.40
PV=FV/(1+I)^ n
=897,395,025.40/ (1+0.07)^ 15
=325.266.310,1
LinkedIn targets a specific demographic: working professionals. They tend to be older and better educated. Why might advertisers be more interested in this group over others
Answer: Buying power
Explanation:
As the question says, LinkedIn has working professionals which means that these are people with income sources that can enable them to purchase goods and services.
Advertisers would therefore target them so that they may get them to purchase the goods and services they are advertising because these working professionals have a better chance of patronising the advertisers than other groups of people who may not have the income requirements necessary to do so.
Using the midpoint method, calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means
Answer:
The data of the question is this:
YEAR Gosum Berries Price Per
Demand Barrel
107 700 $70
108 600 $84
Explanation:
The Mid-Point Formula to calculate the Price Elasticity of Demand is:
[ (Q2 - Q1) / (Q2 + Q1) / 2 ] this divided by [ (P2 - P1) / (P2 + P1) / 2 ]
where Q is demand, and P is price
Now, we plug the amounts into the formulas:
[ (600 - 700) / (600 + 700) / 2 ] = -0.038
[ (84 - 70) / (84 + 70) / 2 ] = 0.045
-0.038 / 0.045 = -0.844
Thus, the elasticity of demand for gosum berries, using the midpoint method, is -0.844, however, economists use absolute values for elasticities, so -0.844 becomes 0.844
An elasticity of demand of 0.844, which is less than one, indicates inelastic demand. This means that the quantity demanded for gosum berries falls less in proportion to raises in price.
In order worlds, the coefficient of elasticity of demand measures the price sensitivity of consumer demand for a particular good or service.
Suppose that you reach 65 years old, and have $100,000 in an investment that pays a return of 5 percent per year. a) If you withdraw $10,000 at the end of each year for living expenses, how many years will it take before your investment is gone
Answer:
It will take approximately 14.21 years before the investment is gone.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or investment value = $100,000
P = Annual withdrawal = $10,000
r = return rate = 5%, or 0.05
n = number of more years it will take before the investment is gone = ?
Substituting the values into equation (1) and solve for n, we have:
100,000 = 10,000 * ((1 - (1 / (1 + 0.05))^n) / 0.05)
100,000 / 10,000 = (1 - (1 / 1.05)^n) / 0.05
10 = (1 - (1 / 1.05)^n) / 0.05
10 * 0.05 = 1 - (1 / 1.05)^n
0.50 = 1 - (1 / 1.05)^n
(1 / 1.05)^n = 1 - 0.50
0.952380952380952^n = 0.50
Loglinearize both sides, we have:
n * log0.952380952380952 = log0.50
n = log0.50 / log0.952380952380952
n = -0.301029995663981 / -0.0211892990699382
n = 14.2066990828904
Approximating to 2 decimal places, we have:
n = 14.21
Therefore, it will take approximately 14.21 years before the investment is gone.
On January 1, 2024, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2034. The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31. The 12/31/24 bond carrying value is approximately:
Answer: The bond carrying value is approximately $3,332
Explanation:
Given that
Year Int. Expense(A) Interest pmt(B) Pre. amortization Bonds carrying val
9% of previous 11% of face B-A Issue price - prem
carrying value value Amort
0 0 0 0 $3,385
1 (0.09×3385) (0.11×3000) (330 - 304.65) (3,385 - 25.35 )
$304.65 $330.00 $25.35 $3,359.65
2 (0.09×3,359.65) (0.11×3000) (330 - 302.37) (3,359.65-27.63)
$302.37 $330.00 $27.63 $3,332.02
The bond carrying value is approximately $3,332
Assume that Bunch Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's expected rate of return on these bonds is 5%. How much would these bonds sell for today
Answer:
$1,244
Explanation:
According to the scenario, the given data are as follows:
Future value (FV) = $1,000
Interest = 7%
So, Payment (PMT) = $1,000 × 7% = $70
Rate of return (rate) = 5%
Time period (Nper) = 18 years
So, by putting the following data in PV formula in excel sheet,
Attachment is attached below.
Present value of Bonds = $1,233.79 or $1,244
If a firm raised its price and discovered that its total revenue fell, then the demand for its product is Group of answer choices perfectly elastic. perfectly inelastic. relatively elastic. relatively inelastic.
Answer: relatively elastic.
Explanation:
Elasticity is the measure of the responsiveness that a product's quantity demanded has to a change in its price. In other words, if the quantity demanded changes as a result of a change in price, the good is elastic.
In this scenario, the total revenue fell when they increased price. This means that people bought less of the firm's goods which means therefore that the good is relatively elastic because the quantity demanded was affected by a change in price.
johns parents passed away within six weeks of one another as the trustee, john is following the trust instructions and will sell the family home. john will be paid in accordance with the trust documents which of the following is correct
Answer:
John is working within the scope of his duties following trust instruction and does not need a license
Explanation:
Marine City Company sells bags of coffee. Each bag includes one coupon; five coupons (plus $3.00) are redeemable for a personalized coffee mug. In 2023, Marine City purchased 9,000 mugs at $4.20 each and sold 60,000 bags of coffee that year at $6.00 per bag. Marine City estimated that 50% of the coupons would be redeemed. Actual coupons redeemed were 8,000 in 2023 and 13,000 in 2024. The estimated liability for outstanding premiums on the 12/31/23 balance sheet is:
Answer:
$5,280
Explanation:
Coupon expected to be redeemed = 60000 bags * 0.50 = 30,000
Number of coffee mugs to be obtained against coupons = 30,000 / 5 = 6,000
Bags actually redeemed against coupons = 8000/5 = 1,600
Cash cost to the company = Cost of mug - Cash to be paid
Cash cost to the company = $4.20 - $3.00
Cash cost to the company = $1.20
Estimated liability = (6,000 - 1,600) * $1.20
Estimated liability = 4,400 * $1.20
Estimated liability = $5,280
So, the estimated liability for outstanding premiums on the 12/31/23 balance sheet is $5,280
Strengths and weaknesses Group of answer choices should be kept confidential. are areas of high and low capability. relate to the external environment. are an outcome of strategic implementation. g
Answer:
are areas of high and low capability
Explanation:
Every company or organization has the strength and weakness. In the given situation the first option represents the strength and weakness. The strength could be in terms of big market share, strong attidtude of the employees, economies of scale
While on the other hand the weakness would be organization is lagging behind its competitor
So the first option is right
Teel Distribution Co. has determined its December 31, 2007 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows:
Estimated selling price $255,000
Estimated cost of disposal/completion 10,000
Normal profit margin 30,000
Current replacement cost 225,000
Teel records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2007, the loss that Teel should recognize is:__________.
a. $0.
b. $5,000.
c. $20,000.
d. $25,000.
Answer:
b. $5,000
Explanation:
Applying the lower-of-cost-or-market rule, Inventory are valued at the lower of the Cost or Market Value (Net Realizable Value).
where,
Cost of Inventory = $250,000
and
Net Realizable Value (NRV) = Estimated selling price- Estimated cost of disposal/completion
= ($255,000 - $10,000)
= $245,000
therefore,
Loss from write down of Inventory to Market Value = $5,000 ($250,000 - $245,000)
Assuming two investments have equal lives, a high discount rate tends to favor Group of answer choices the investment with even cash flow neither investment since they have equal lives the investment with large cash flow early the investment with large cash flow late
Answer:
the investment with large cash flow early
Explanation:
This can be illustrated with an example.
There are 2 investments A and B
The cash flows of A =
Cash flow in year 1 = $50,000
Cash flow in year 2 = 0
Cash flow in year 3 = 0
The cash flows of B =
Cash flow in year 1 = 0
Cash flow in year 2 = 0
Cash flow in year 3 = 50,000
Discount rate for both investment is 40%
Present value of A = $35,714.29
Pesent value for B = $18,221.57
It can be seen that the investment with the higher cash flow early has a higher present value
What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)
Answer: $4,262.50
Explanation:
The total expected cost would be the total expected values of the insurance given the probability that Jim might die.
= ∑expected value at 60,61, 62, 63, 64
= (0.01054 * 50,000) + (0.01447 * 50,000) + (0.01645 * 50,000) + (0.02068 * 50,000) + (0.02311 * 50,000)
= $4,262.50
Jerry owns a manufacturing business. He keeps a large amount of inventory and cash in his warehouse. He plans to have a good internal control since he fears that some of his employees may steal the business’s resources. Which type of risk does Jerry face in this scenario?
A.
economic risk
B.
human risk
C.
natural risk
D.
uncontrollable risk
The type of risk does Jerry face in this scenario is economic risk as keeps a large amount of inventory and cash in his warehouse.
What is economic risk?The possibility that changes in macroeconomic conditions would hurt a business or investment is known as economic risk.
Profits or losses could be affected by political unrest or fluctuating exchange rates, for example. Cyber-attacks, Energy price shock, Failure of national governance, Fiscal crises. are some types of economic risk.
Thus, option A is correct.
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Fuchsia provided services to 1,600 clients in the month of March and generated $23,500 as revenue. How much is the cost per service? (Round your answer to the nearest cent.)
Answer:
$10.72
Explanation:
Calculation for How much is the cost per service
First step is to calculate the Total costs
Building Rent Expense $5,200
DepreciationExpense—Equipment 1,600
Supplies Expense 8,000
Utilities Expense 2,350
Total costs $17,150
Now let calculate the Cost per service using this formula
Cost per service = Total costs / Services
Let plug in the formula
Cost per service = $17,150 / 1,600
Cost per service = $10.72
Therefore the cost per service is $10.72
what is computer ethics?
Answer:
Computer ethics is a part of practical philosophy concerned with how computing professionals should make decisions regarding professional and social conduct.
Hope you like the answer.
Answer:
Computer ethics is defined as the analysis of the nature and social impact of computer technology and the corresponding formulation and justification of policies for the ethical use of such technology. The typical problem with computer ethics is the policy vacuum that arises from the new capabilities of the technology.
Explanation:
Computer ethics essentially protect individuals online from predation: they prevent breach of privacy, identify theft, interference with work and unlawful use of proprietary software, among other events. Computer ethics govern the behavior of users online, and date back to 1992.
please mark me brainliest
The annual net sales for a huge soft drink company were 5.6 billion dollars in 2012 and sales were increasing at a continuous rate of 3.85% per year. Estimate, in billions of dollars, the annual net sales in 2016
Answer: 6.51 billion dollars
Explanation:
From the question, we are informed that the annual net sales for a huge soft drink company were 5.6 billion dollars in 2012 and that sales were increasing at a continuous rate of 3.85% per year.
The annual net sales in 2016 will be:
= 5.6 billion × (1 + 3.85%)^4
= 5.6 billion × (1 + 0.0385)^4
= 5.6 billion × (1.0385)^4
= 5.6 billion × 1.1631
= 6.51 billion dollars
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: What are the equivalent units for conversion costs for the month in the first processing department
Answer:
Equivalent units for conversion costs are 6,925 units
Explanation:
Note : I have attached the full question as an image below
Equivalent units are physical units expressed as a percentage of total work completed on them
Equivalent units for conversion costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 75%) 825
Equivalent units for conversion costs 6,925
Equivalent units for material costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 85%) 935
Equivalent units for material costs 7,035
Which of the following is the most
correct?
Select one:
a. GNP at factor cost - Depreciation
=NNP at market price
b. All
c. GDP at market price +NFIA-NIT-
Depreciation =NNP at factor cost
d. NDP at market price +NFIA-NIT=NNP at factor cost
= All
Answer:
It should be GNP because all others seem invalid
Thanks for the points also :-)
Identifying the Purpose of the Goal Seek Feature For which task is the Goal Seek feature most helpful? O selecting random values for the result of a formula O identifying calculations that are missing from a function O adjusting a formula to export its result to a separate worksheet O working backward to identify the input values for a specific result
Answer: O working backward to identify the input values for a specific result
Explanation: I got it right
Answer:
D
Explanation:
Timing Technology, Inc. manufactures timing devices. During 20x1, 1,500,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 320,000 units in work in process. These units were 49 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 450,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:
Units Materials Labor
Work in process, January 1, 20x1 310,000 $310,000 $315,400
(84% complete as to conversion)
Units started in production 1,510,000
Direct-material costs $2,966,000
Direct-labor costs $2,998,200
Required:
Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory.
Physical Units
Total units to account for 0
Total units to account for 0
Answer:
The cost of work-in-process inventory as of December 31, 20x1 is:
= $368,998.40
Physical units:
For materials = 320,000 units
For conversion = 156,800 units
Explanation:
a) Data and Calculations:
Units Materials Labor
Work in process, January 1, 20x1 310,000 $310,000 $315,400
(84% complete as to conversion)
Units started in production 1,510,000 1,510,000 1,510,000
Direct-material costs $2,966,000
Direct-labor costs $2,998,200
Total costs $3,276,000 $3,313,600
Units started in production 1,510,000 1,510,000 1,510,000
Work in process, December 31, 20x1 320,000 320,000 156,800
Total equivalent units 1,830,000 1,666,800
Costs per equivalent unit $1.79 $1.988
Cost of Ending WIP = $ (320,000 *$1.79 + 156,800*$1.988)
= $57,280 for materials + $311,718.40 for materials
= $368,998.40
b) The weighted average method was used to calculate the equivalent units. With this method, the beginning units of work-in-process are not part of the calculation (only the units started and completed and the ending work-in-process are). However, the costs of the beginning work-in-process form part of the calculation together with the cost of units started and completed during the current period.
evaluate the philosophy behind the company's way of working and analyze how it impacted upon perceptions of organizational justice both when the company was formed and later when redundancies were threatening.
Answer: The system treated everyone fairly and carried them along
Explanation:
Prior to Ed's passing away his phone was to make work as much fun as possible and less stressful. Although it was more of a selfish reason for Ed but it worked out for the interest of the company. This boasted the relationship within the company making everyone happy. Everybody was treated special to the company regardless of how they worked, there was no pillars nor competition. Although Ed was never working from the HRM perspective he still delivered some of the important key roles within the HRM which was fairness and happiness within employees. After his passing away, the pillar system was not sustained.
4. If a decrease in the price of one product results in an increase in demand for another product, then the product is:
Answer:
Substitute goods
Explanation:
Substitutes goods are products that can be used in place of one another. Consumers will be happy consuming either of the substitute goods. Therefore, substitute goods are similar and offer solutions to similar customer problems. Examples of substitute goods are tea and coffee.
If the price of one substitute good decreases, its demand will rise. Customers will prefer consuming that product over its substitutes due to its lower prices. The demand for other substitute goods will decrease as customers prefer the more affordable options.
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information:
November 30
Debit Credit
Supplies $1,650
Prepaid Insurance 6,600
Salaries Payable $10,300
Deferred Revenue 2,300
The following information is known for the month of December: Purchases of supplies during December total $3,800. Supplies on hand at the end of December equal $3,150. No insurance payments are made in December. Insurance cost is $1,650 per month. November salaries payable of $10,300 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,300. On November 1, a tenant paid Golden Eagle $3,450 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.
Required:
Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31.
Answer:
Date General Journal Debit Credit
Dec 31 Supplies expenses $2,300
(1,650+3,800-3150)
Supplies $2,300
(To record the supplies used during the period)
Dec 31 Insurance expenses $1,650
Prepaid expenses $1,650
(To record the insurance expired for December)
Dec 31 Salaries expenses $15,300
Salaries payable $15,300
(To record the unpaid salaries)
Dec 31 Deferred revenue $1,150
(3450/3 months)
Rent revenue $1,150
(To record the revenue earned during the period)
Journal entries are used in accounts for the purpose of recording financial transactions either economic or non-economic for the business.
Adjustment entries are used for making final income and expenditure recordings at the point of their occurrence.
The adjustment entry for the given dataSupplies expenses Dr $2,300
To supplies $2,300
The supplies are recorded during 31 December:
[tex]1,650+3,800-3150\\=2300[/tex]
Dec 31 Insurance expenses Dr. 1650
To Prepaid expenses 1650
Dec 31 Salaries expenses Dr. 15,300
To Salaries payable 15,300
Dec 31 Deferred revenue Dr. 1150
To Rent revenue 1150
Revenue earned during this period is calculated by:
[tex]\frac{3450}{3} \\=1150[/tex]
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Sabv Corporation's break-even-point in sales is $890,000, and its variable expenses are 70% of sales. If the company lost $39,000 last year, sales must have amounted to:
Answer:
Sales must have amounted to $760,000
Explanation:
We need to calculate from the bottom to the top of the Contribution Income Statement
Step 1
Break Even Point (Dollars) = Fixed Cost ÷ Contribution Margin
Where,
Contribution Margin = 100 % - 70%
= 30 %
Therefore,
Step 2
Fixed Costs = Break Even Point (Dollars) × Contribution Margin
= $890,000 × 30 %
= $267,000
Step 3
We know that,
Net Income/ loss = Contribution - Fixed Costs
Therefore
Contribution = Net Income/ loss + Fixed Costs
= - $39,000 + $267,000
= $228,000
Step 4
Finally, we need to calculate the amount in sales
Sales = 100/30 × $228,000
= $760,000
A farmer grows wheat, which she sells to a miller for $70. The miller turns the wheat into flour, which she sells to a baker for $120. The baker turns
the wheat into bread, which she sells to consumers for $135.
What is the question? Please be specific.
If the government and Central Bank don't use economic policy, what could happen?
A. Prices could skyrocket, making goods more difficult to buy.
B. Unemployment could rapidly rise, making it harder to find a
job.
C. GDP could rapidly fall, creating a recession in the economy.
D. All of the above
Answer: D. All of the above
Explanation:
Economic policies are the policies athat are out in place by the government in order to control economic activities.
These policies are used to reduce inflation, provide employment opportunities, increase standard of living, encourage economic growth etc.
If the government and Central Bank don't use economic policy, that s cs lead to inflation, increase in unemployment and fall in the GDP.
Therefore, the answer is option D
After achieving a result, good managers invest time in reflecting on what went well and what could have gone better. They consider whether they were as effective as they could have been and whether they got the result in the most efficient way possible. Then they apply what they have learned to future projects.
Congratulations! You just graduated with a degree in management. As you reflect on your school experience, you make a list of the reasons you were so efficient with your studies. Which of the following statements relate specifically to your efficiency?
a. Last year, you reviewed the course schedule to ensure you knew when to enroll in certain electives that are offered only once per year.
b. When registration opened for each term, you immediately registered for the classes you needed, especially the ones that fill up quickly.
c. Throughout your time in school, you chose electives that would provide you with a well-rounded education, and not based on how easy you heard the classes were.
d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date.
Answer: d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date
Explanation:
Efficiency is measurable and has to do with the ability to achieve a goal or get a result that's desired and avoid wastage of efforts or resources.
With regards to the explanation above, the statement that relate specifically to your efficiency is asking the level adviser to review ones progress in order to show that one is on track.
This shows that the person wants to achieve the goal of graduation and is putting all of his efforts towards that.
A special project is going to be started by Hally Corporation. Company is considering using stocks of an old raw material in a special project. The special project would require all 230 kilograms of the raw material that are in stock and that originally cost the company $900 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.50 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $50 for all 230 kilograms. What is the relevant cost of the 230 kilograms of the raw material when deciding whether to proceed with the special project?
Answer:
What were wealthy merchants known as in India?What were wealthy merchants known as in India?
What were wealthy merchants known as in India?
Explanation:
What were wealthy merchants known as in India?I miss you so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so so much
Answer:
Explanation:
A special project is going to be started by Hally Corporation. Company is considering using stocks of an old raw material in a special project. The special project would require all 230 kilograms of the raw material that are in stock and that originally cost the company $900 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.50 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $50 for all 230 kilograms. What is the relevant cost of the 230 kilograms of the raw material when deciding whether to proceed with the special project?
The United Nations Development Pro- gramme (UNDP) uses the Human Development Index (HDI) in an attempt to summarize in one number the progress in health, education, and economics of a coun- try. The number of cell phone subscribers per 1000 people is positively associated with economic progress in a coun- try. Can the number of cell phone subscribers be used to predict the HDI
Answer:
I'm not sure that the number of cell phones users per 1,000 people can be a good economic indicator. E.g. there are currently more than 1.6 billion cell phone users in China, which means that some people obviously use more than 1 cell phone (Chinese population is around 1.4 billion people). But China's HDI is 0.752 (2017) and that places China at the number 85 spot, which is really not a good place.
While other countries like Norway have less than 5 million cell phone users with a population of more than 5.35 million people. But Norway is ranked as the number 1 country in HDI.
Assume the real rate of return is 2.97% and the inflation rate is 2.20%. Find the nominal rate of return using the exact formula.
Answer:
Nominal rate of return= 0.0517 = 5.17%
Explanation:
Giving the following information:
Real rate of return= 2.97%
Inflation rate= 2.20%
To calculate the nominal rate of return, we need to use the following formula:
Real rate of return= nominal rate of return - inflation rate
Nominal rate of return= Real rate of return + inflation rate
Nominal rate of return= 0.0297 + 0.022
Nominal rate of return= 0.0517 = 5.17%
