Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of the two years. The annual real rate of interest is

Answers

Answer 1

Answer:

3%

Explanation:

Calculation to determine what the Annual real interest rate is

Using this formula

Annual real interest rate = Annual nominal interest rate - expected annual inflation rate

Let plug in the formula

Annual real interest rate=8%-5%

Annual real interest rate=3%

Therefore Annual real interest rate is 3%


Related Questions

One of the big strategic issues in expanding internationally is Multiple choice question. determining whether to employ an international or global strategy in the early stages of entering a company's largest foreign markets. how much to charge for licensing a company's brand in a foreign market. customizing products in each country market to match preferences of local buyers versus competitive pressure to keep costs down. adapting to language differences.

Answers

Answer:

Customizing products in country markets for local buyers versus competitive pressures to keep costs down.

Explanation:

International expansion strategies can be regarded as formal as well as multi-level strategic plans which is been used by businesses to enter an overseas market as well as establishing a growing presence, so they can become profitable in quick to time. It is a competitive analysis that is used in vetting the business offerings as well as operations of a company against industry competition as regards new market. In this competitive pressures is one of those things to consider this range from how to keep the price balance, the product as well as services to meet up with compititive market, another one is Product Customization which involves delivering of customized goods/services to the customers base on their needs and desire.

It should be noted that One of the big strategic issues in expanding internationally is Customizing products in country markets for local buyers versus competitive pressures to keep costs down.

Required-: JOURNAL ENTRY (ACCOUNT)
Paid Rs. 28,000 to Sansee stores in fullsettlement of Rs. 30,000 by cheque please help Me with this. I'm still confused in it.

Answers

- Hey there , ronisha!

Answer:

[tex] \large{ \tt{SEE \: THE \: ATTACHED \: PICTURE}}[/tex]

[tex] \large{ \tt{E \: X \: P \: L \: A \: N \: A \: T \: I \: O \: N}} : [/tex]

Full settlement generally means DISCOUNT ALLOWED.

Firstly , Read out the question and try to understand. It says we purchased some stuffs of Rs 30000 from the sansee stores and we payed Rs 28000 in full settlement which implies that we received the discount of Rs 30000-28000 i.e Rs 2000.

You must have known the rules for debit and credit. As we know In case of personal account , Debit : The receiver , We have sansee stores as the receiver so we placed it in debit side.

Remember: When the question says that the cash is payed through cheque , you should always consider cheque as a bank. Now , In the case of personal account , Credit : The giver. Who's the giver? Of course , bank! So , we placed it in credit side.

Now , In case of nominal account , Credit : the incomes or gains . The question says we received the discount so obviously it's not expenses. So, We placed discount received in credit side. You must have studied that Every debit should have equal credit. And we're done!

- Hope this helps! Please let me know if you have any questions regarding my answer and also don't hesitate to reach out to me if you need any other help! :)

Which type of retailer offers a wide choice of products and high-quality service?

Answers

Answer:

Department store

Explanation:

Stores may be categorized based on the type and variety of goods which they offer. Department stores may be described as a retail store or opening which is designed to offer a wide range of consumer products. Department stores on their case offers several categories of consumer products and are thus segmented based on these categories :

Categories of consumer product offers may include ; Clothing ; Electronics ; Mobile devices ; Furniture, Groceries and so on. With department stores, consumers can have almost all their retail needs met all in one place.

What is your major(potential) in college?

Answers

going to school for my asn, getting my rn and bsn! i want to work in emergency medicine and when i get too old for that ill work in womens health

At the beginning of the year (January 1), Buffalo Drilling has $11,000 of common stock outstanding and retained earnings of $6,900. During the year, Buffalo reports net income of $7,200 and pays dividends of $1,900. In addition, Buffalo issues additional common stock for $6,700. Required: Prepare the statement of stockholders' equity at the end of the year (December 31)..

Answers

Answer:

Statement of stockholders' equity at the end of the year December 31

                                               Common Stock  Retained Earnings   Total

At Beginning of the year :

Balances                                      $11,000                 $6,900       $17,900

During the Year :

Net Income                                      -                         $7,200        $7,200

Dividend                                          -                         ($1,900)       ($1,900)

Issue of Common Stock             $6,700                       -              $6,700

At End of the Year :

Balances                                    $17,700               $12,200       $29,900

Explanation:

Stockholders' equity represents all items that are attributable to the owners of the company.

The statement of stockholders' equity at the end of the year December 31 has been prepared above according to IAS 1.

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Answers

Answer:

Value

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

In Economics, value is a subjective assessment of benefits by a customer with respect to costs in determining the worth of a product.

For example, a hotel provides a comfortable and convenient bed to spend the night (sleep) when you travel for a vacation at a price.

1. An open market purchase A. shifts the supply curve for reserves to the right and causes the federal funds rate to fall. B. shifts the demand curve for reserves to the right and causes the federal funds rate to rise. C. shifts the supply curve for reserves to the left and causes the federal funds rate to rise. D. shifts the demand curve for reserves to the left and causes the federal funds rate to fall.

Answers

Answer:

The correct answer is option A (shifts the supply curve for reserves to the right and causes the federal funds rate to fall).

Explanation:

Open market purchase Increases the money supply in an economy where government bonds are bought from a bank by the Federal Reserve, this single act makes money available to the bank, which now makes Interest rates fall and raise investment spending. When federal funds rates fall, money supply increases which is a visible characteristic of an open market purchase. Similarly, when the supply curve for reserves shifts to the right, it signifies an open market purchase.

Under a fixed exchange rate regime, the government of the country is officially responsible for ___

Answers

Answer:

D. all of the above

Explanation:

THESE IS THE COMPLETE QUESTION BELOW;

Under a fixed exchange rate regime, the government of the country is officially responsible for

A) intervention in the foreign exchange markets using gold and reserves.

B) setting the fixed/parity exchange rate.

C) maintaining the fixed/parity exchange rate.

D) all of the above.

A fixed exchange rate can be regarded as regime that is been applied by either government or central bank , which is responsible for tieing official currency exchange rate of a country to that of another currency of a country or the price of gold. Government use fixed exchange rate system to keep within a narrow band the value of currency. It should be noted that Under a fixed exchange rate regime, the government of the country is officially responsible for;

✓ maintaining the fixed/parity exchange rate.

✓intervention in the foreign exchange markets using gold and reserves.

✓setting the fixed/parity exchange rate.

Lee works 40 hours per week, typically working 10 hours per day Monday through Thursday, and taking a three-day weekend. Lee works a ______ workweek

Answers

Answer:

Compressed workweek

Explanation:

Compressed workweek refers to the flexibility in which a worker works complete hours in a week but it works in fewer days. For instance, a worker works 4 days and completes 40 hours of work and then enjoys three days off. Here, this flexibility is called the compressed workweek.

The economic term that describes the satisfaction that consumers gain from consuming goods and services is

Answers

Answer:

utility

Explanation:

Answer:

Utility

Explanation:

I got the answer right on my test

On June 1, Edward visited a bicycle sales and service center. Edward spotted a used bike he liked and was told by the dealer that he could have the bike for $100 cash. Since Edward needed a few days to get the money, Edward got a signed, written statement by the dealer that Edward could buy the bike for $100 at anytime on or before June 15. On June 10 Edward came to the dealer with the money, but the bike had been sold to another customer. Was the dealer under any obligation to Edward to keep this offer open until June 15? Give legal reasoning for your answer.

Answers

Answer:

"Yes" will be the correct response.

Explanation:

The dealership has been obliged to Edward since Edward as well as Dealer had written agreements stating that somehow Edwards may acquire their motorbike on the day before the fifteenth of June.The two parties offered and otherwise accepted as well as agreed in writing. That's because the contract remained valid, Dealer may be prosecuted as well for contravention.

In comparing two investment alternatives, the difference between the net present values of the two alternatives obtained using the total-cost approach will be:

Answers

Answer:

the same as using the incremental cost approach

Explanation:

There are two approaches to compare rival investment proposals using the net present value method (npv comparison). The total cost method as well as the incremental cost strategy are two different approaches. The total cost method has the distinct benefit of allowing an unlimited number of choices to be evaluated side by side to find the optimal course of conduct.

Each of the following are classified as an operating activity except: multiple choice payment of salaries collection of credit sales receipt of dividend revenue purchase of short-term investments

Answers

Answer:

purchase of short-term investments

Explanation:

The operating activity deals in payment and receipts of the cash payment and cash receipts with regard to day to day expenses, sales, etc

It can involved the salaries payment, credit sales, dividend revenue

But does not include the purchase of short term investment as it is the part of the investing activity not the operating activity

During 2013, Arb Company incurred the following direct labor costs: January $20,000 and February $30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months, respectively, totaled $19,500 and $35,700. Actual overhead for the 2 months, respectively, totaled $24,500 and $32,500.

Determine if overhead is over- or underapplied for each of the two months and the respective amounts.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Predetermined overhead rate= 120% of direct labor cost

First, we need to allocate overhead for the 2 months:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Month 1:

Allocated MOH= 20,000*1.2= $24,000

Month 2:

Allocated MOH= 30,000*1.2= $36,000

Now, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Month 1:

Under/over applied overhead= 24,500 - 24,000

Underapplied overhead= $500

Month 2:

Under/over applied overhead= 32,500 - 36,000

Overapplied overhead= $3,500

Management should conduct a ________ to identify those controls that are most appropriate and provide the greatest benefit to the organization given the available resources.

Answers

Answer:

cost-benefit analysis

Explanation:

A cost-benefit analysis (CBA) is the process that are applied to determine the decision benefits or the actions are taken minus the cost along with the actions. It includes the financial metrics like revenue or the cost i.e. saved

So here in the given situation the cost benefit also provides the high benegits to the organization by having the resources

Therefore the above should be the answer

ike started a calendar-year business on September 1st of this year by paying 12 months of rent on his shop at $650 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method

Answers

Answer:

$7800 under the cash method and $2600 under the accrual method

Explanation:

Calculation to determine the maximum amount of rent that Mike can deduct this year under each type of accounting method

UNDER THE CASH METHOD

Cash method=$650*12

Cash method=$7800

UNDER THE ACCRUAL METHOD

Accrual method =4 months*650

Accrual method =$2600

(September 1st to December 31st =4 months)

Therefore the maximum amount of rent that Mike can deduct this year under each type of accounting method is :$7800 under the cash method and $2600 under the accrual method

Earline rented a drilling machine from Quatero Rental Corp. While Earline was drilling as instructed by the product manual, the drill bit snapped and injured her seriously. A thorough examination of the broken drill bit showed that it had a flaw that caused it to snap under intense heat or pressure. Under these circumstances, Quatero will _____.

Answers

Answer:

The options are

A. be held liable for Earline's injuries because a bailment for the sole benefit of the bailee was created

B.be held liable for Earline's injuries if it knew of the flaw in the drilling machine when it rented it to Earline, but failed to warn her of the defect

C.not be held liable for Earline's injuries because both Quatero and Earline share mutual benefits from the bailment

D.not be held liable for Earline's injuries because it is a private contract carrier and is held to a lower level of responsibility

The Answer is B. be held liable for Earline's injuries if it knew of the flaw in the drilling machine when it rented it to Earline, but failed to warn her of the defect

The drilling machine having a fault and Quatero Rental Corp. being aware of it and not telling Earline about it means the company is at fault and will be held liable for any form of injury or death it poses. This is because it’s their responsibility to ensure goods and services being rendered are safe for use and consumption and it applies to all companies.

The delay between registering new securities with the SEC and selling them can best be avoided by use of proxy. shelf-registration. use of a margin call. use of preemptive rights.

Answers

Answer: shelf registration

Explanation:

The delay between registering new securities with the securities exchange commission and selling them can be avoided by use of shelf-registration.

Shelf registration, is a form of public offering whereby some issuers can offer and also be able to sell their securities to the public such that a separate prospectus isn't required for each offering and also a further prospectus isn't required as well.

The main advantage of the shelf registration is that it's timely and certain such that the capital markets can be accessed even when it's required.

3M, an American firm, manufactures adhesive tape in St. Paul, Minnesota, and ships the tape to South Korea for sale. According to this information, 3M uses ________ to deliver this product. A. exporting B. licensing C. franchising D. insourcing E. outsourcing

Answers

Answer: exporting

Explanation:

Exporting refers to the sale of products and services that are sources or made in a particular country to foreign countries. On the other hand, importing is the purchasing of goods and services from the foreign countries and then bringing them into the home country.

In this case since 3M manufactures adhesive tape in St. Paul, Minnesota, and ships the tape to South Korea for sale, this is exporting.

Menu costs are higher in traditional markets than digital markets. Group of answer choices True False

Answers

Answer:

true

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.

Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.

what are the types of cheque​

Answers

Answer:

Bearer Cheque.

Order Cheque.

Crossed Cheque.

Open Cheque.

Post-Dated Cheque.

Ante Dated Cheque.

Stale Cheque.

Traveler's Cheque.

Answer:

hey mate plz mark it as brainliest

Explanation:

Bearer Cheque.

Order Cheque.

Crossed Cheque.

Open cheque.

Post-Dated Cheque.

Stale Cheque.

Traveller's Cheque.

Self Cheque.

Margo is purchasing a home for $520,000. The property appraised at $550,000 and Margo is financing $416,000. What's the loan-to-value ratio

Answers

Answer:

Loan-to-value ratio = 0.8

Explanation:

Given information:

Purchase cost of house = $520,000

Property appraised value (House value) = $550,000

Margo finance (Loan amount) = $416,000

Find;

Loan-to-value ratio

Computation:

Loan-to-value ratio = Loan value / Purchase cost

Loan-to-value ratio = Margo finance (Loan amount) / Purchase cost of house

Loan-to-value ratio = 416,000 / 520,000

Loan-to-value ratio = 0.8

Ted is a favorite among his subordinates, as he gets directly involved in the minute details of their work. He is task-oriented and has clear knowledge on critical operational details of his team. In this context, Ted can be considered a(n) _____ leader.

Answers

Answer:

ingratiating.

Explanation:

It is correct to say that Ted can be considered an ingratiating leader, which is a technique used to improve personal relationships through the use of sympathy, assistance, interest and collaboration, so that there is a positive influence on people and consequently greater individual willingness to respond to expectations of that person.

As the question explains, Ted has the sympathy of subordinates and is considered one of the favorite leaders because he gets involved in the work, understands the workers and helps with tasks, so he is a ingratiating leader.

Norah was less educationally qualified and experienced than her colleagues when she joined Micro Systems Inc. However, due to her ability to negotiate effectively with clients, convince her team members to work harder, and understand their needs, she is a senior-level manager today. Which skills can be most attributed to Norah's success in this scenario

Answers

Answer:

human relations skills

Explanation:

It is correct to say that Norah's human relations skills helped her achieve the position of senior manager, despite being less educationally qualified than her peers.

Human relations skills correspond to the skills a person has in dealing with people, such as Norah's negotiating, convincing, understanding, and motivating skills in relation to her team members. These skills are essential for a manager, who is the leader responsible for coordinating and controlling through good interpersonal skills, the ability to help and motivate his team to achieve organizational goals and objectives.

Smith Company produces and sells one product for $40 per unit. The company has no beginning inventories. Its variable manufacturing cost per unit is $18 and the variable selling and administrative expense per unit is $4. The fixed manufacturing overhead and fixed selling and administrative expense total $80,000 and $20,000, respectively. If Smith Company produces 8,000 units and sells 7,500 units during the year, then its net operating income under variable costing would be

Answers

Answer:

$35,000

Explanation:

net operating income under variable costing would be calculated by preparing income statement under variable costing.

Smith Company

income statement under variable costing system

Sales (7,500 x $40)                                                          $300,000

Less Cost of Sales (7,500 x $18)                                     ($135,000)

Contribution                                                                       $165,000

Less Expenses

selling and administrative expense ($4 x 7,500)            ($30,000)

fixed overheads :

manufacturing                                                                   ($80,000)

selling and administrative expense                                 ($20,000)

Net Income                                                                         $35,000

a transportation service provider that handles shipments on a case-by-case basis, without the need for long-term agreements or contracts Unselected a service firm that handles all of the logistics requirements for other companies Unselected a transportation service provider that handles shipments for other firms based on long-term agreements or contracts Unselected an agent who serves as an intermediary between an organization shipping a product and the actual carrier, typically on international shipments Unselected

Answers

Answer:

1. Common (public) carrier.

2. Third-party logistic provider (3PL).

3. Contract carriers.

4. Freight forwarder.

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers.

Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

Some of the service providers in the supply and logistics chain management are;

1. Common (public) carrier: a transportation service provider that handles shipments on a case-by-case basis i.e based on the type of shipment, without entering into long-term agreements or contracts.

2. Third-party logistic provider (3PL): a service firm that is saddled with the responsibility of handling all of the logistics requirements for other companies.

3. Contract carriers: a transportation service provider that handles shipments for other firms based on long-term agreements or contracts. It is simply the opposite of common (public) carriers. Shipments from different local businesses may be combined by a contract carrier through the use of a consolidation warehouse.

4. Freight forwarder: an agent who serves as an intermediary between an organization shipping a product and the actual carrier, typically on international shipments. Thus, he or she is a middleman between the organization whose product is being shipped and the carrier company, especially for international freights.

In a free market setting where quantity supplied is 40 units and quantity demanded is 50 units, price will:

Answers

Answer: Increase

Explanation:

According to the Law of Supply and Demand, If the demand for the good is higher than the supply, the price will be higher to reflect the relative scarcity and if the demand is lower than supply, the price will be lower to reflect the relative excess.

In this case the quantity demanded is higher than the quantity supplied so the price will have to increase to reflect the relative scarcity of the good.

Your uncle passed away and left you and your siblings his private property. He owned a 180 acre ranch and there are 3 of you. Each acre is valued at approximately $3,000. This means the monetary value for each sibling will be:

Answers

Find the total value by multiplying total acres by price per acre:

180 x 3000 = $540,000

Divide total value by number of siblings:

540,000 / 3 = $180,000

Answer: $180,000

Total acre of property = 180 acres
Each sibling will receive = 180/3
= 60 acres
If 1 acre = $3000
Then 60acres = 60• 3000
=$180,000
Therefore, the monetary value for each sibling will be $180,000

when a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far about the price of competition, the company is using the process of

Answers

Answer:

cost proximity.

Explanation:

Cost proximity is a strategy that some organizations can follow to conquer the market. The strategy consists of offering differentiated products with more added benefits than competitors that use a mass product strategy, but without the price of their differentiated product being much higher than those of competitors. With this, the company is able to reach more consumers who perceive greater added benefit from purchasing a differentiated product at a price not much higher than a standard product.

Companies that use this strategy use a configuration of their value chain that allows for gains of scale that allow them to pass on a better price to the consumer without loss of profitability

Property risks are those

A) risks in which loss is the only possible outcome

B) Financial losses that occur due to owing on a real estate investment

C) risks taken on by an investor that can be categorized as systematic or non-systematic

D) risks caused by a change in value caused by the timing and/or amount of expenses incurred versus those expected

Answers

Answer:

a

Explanation:

Property risk is an example of a pure risk.

Pure risks are risks in which loss is the only possible outcome. It could be full loss or partial loss. Other examples of pure risks are personal and liability risks

Property risk is the risk that a person or company's property would be damaged or lost.

For example, if a building is set on fire or if a car is stolen

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