The Nominal Interest Rate Is 10%,the Expected Inflation Rate Is

question 69

Multiple Choice

The nominal interest rate is 10%,the expected inflation rate is 5%,and the combined state-federal tax rate is 35%.The expected after-tax real interest rate is

• A)1)50%.
• B)3)25%.
• C)5)00%.
• D)6)50%.

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Definitions:

Purchases Journal

A record of all purchases of goods and services on credit, aimed at simplifying the accounting process.

Voucher Register

A record of vouchers that have been prepared, detailing amounts to be paid, accounts affected, and supporting documentation.

Voucher System

A control mechanism in accounting wherein vouchers are prepared as evidence of authorization before transactions are recorded.

Purchase Order

A form used in business to place an order for the buying of goods from a seller.