Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Until recently, the U.S. government was paying historically low rates on its debt, largely because of the Federal Reserves efforts to keep interest rates low

Until recently, the U.S. government was paying historically low rates on its debt, largely because of the Federal Reserves efforts to keep interest rates low during and after the Great Recession. But interest rates on federal debt have begun rising again. In fiscal 2018, the average interest rate on the public debt was 2.492%, compared with 2.232% in fiscal 2016, according to the Treasury Department. In June, the average interest rate had risen to 2.567%. Assume the federal governments total debt stands at $22.023 trillion. What is the amount of Net Interest payments the USA will pay this year on the national debt (measured in USD). Please ensure your answer is accurate to one USD.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Science

Authors: David G. Luenberger

1st International Edition

0195391063, 9780195391060

More Books

Students also viewed these Finance questions