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Damm [24]
2 years ago
8

Consider a family who borrows $250,000 to purchase a new home at a fixed interest rate of 8.5%. If inflation increases from 4% t

o 5.5%, how will this impact the real interest rate the family will be paying?
Business
1 answer:
vitfil [10]2 years ago
3 0

The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).

<h3>Real interest rate </h3>

A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.

Learn more about real interest rate here:

brainly.com/question/13324776

#SPJ4

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Halverstein Company's outstanding stock consists of 9,450 shares of cumulative 5% preferred stock with a $10 par value and 4,050
Vsevolod [243]

Answer:

e. $6,000 preferred; $0 common.

Explanation:

The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.

Note also that Cumulative Preference Stock can have their dividends accumulated and paid in the latter years when funds become available.

Amount of Preference Stock dividend is fixed and calculated as follows:

9,450 shares × $10 × 5% = $ 4,725

2015

Cash dividends                                  = $0

Preference Stock dividend Paid      = $0

Preference Stock dividend Arrears = $ 4,725

No Common Stock Dividend

2016

Cash dividends                                  = $6,000

Preference Stock dividend Paid      = $6,000

Preference Stock dividend Arrears = $ 3,450

No Common Stock Dividend

4 0
3 years ago
You want to buy some used textbooks from an online auction but you see they don't accept credit cards. You don't want to send th
Nataly [62]

Answer:

Online actions are not always, but many times a fraud. The Federal trade commission (FTC) warns about them in their website because a lot of people fall for them every year. If the seller doesn't accept a credit card, you can try another online payment method like PayPal, but never send cash or any check.

8 0
3 years ago
As the owner of La Boulangerie Bakery in Baton Rouge, Louisiana, you have a devoted clientele savoring your delicacies. Your sal
Mice21 [21]

Answer:

La Boulangerie Bakery,

Baton Rouge,

Louisiana, U.S.A

25th April, 2021

Dear esteemed customers,

I bring to you an unpalatable news about the changes that would be initiated in our business approach to our customers.

As you can bear witness to, there has been a drastic increase in the cost of doing business in our industry with the notable changes being in the wheat used in producing our confectioneries, the sugar as well as the rising cost of transportation to various customers' locations.

Taking this into account, our company decided to introduce a flat rate delivery cost of $20 irrespective of the location of our customers. This would help us to minimize our production cost. Inorder to also consider our customers, there is a free 20 pieces cake (box) offered to every customer who buys 50 box of each product. This means, 50 box of cupcakes earns you one box free, 100 box cupcake purchase earns you 2 free boxes.

I do hope you would understand our challenges as a company and bear with us regarding to this delivery charge introduction.

Sincerely,

Maris Albert (For the company)

Explanation:

3 0
3 years ago
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would
Semenov [28]

The systematic response coefficient from inflation, would result in a change in any security return of <u>3.2 βI</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Expected rate of inflation = 3%

Actual rate of inflation = 6.2%

The change in security return can be calculated by obtaining the differences between actual and expected levels of inflation.

Change in security return= Actual rate of inflation- Expected rate of inflation

                                                     = 6.2%-3%

                                                     = 3.2%

<u>Change in security return= 3.2 βI </u>

<u></u>

7 0
3 years ago
price quantity total cost $10 40 $374 $10 41 $376 $10 42 $360 $10 43 $365 $10 44 $390 $10 45 $400 $10 46 $412 $10 47 $425 refer
MrRa [10]

The firm's MRP when it produces 44 units of output (from top to bottom) MRP, Regulated: 200, 160, 120, 80, 40.

<h3>What is output?</h3>
  • Output is the quantity of goods or services produced in a given period of time.
  • For a firm that produces a good, the output may simply be the number of units of that good produced each period.
  • Months or Years in production.
  • Input is the process of taking in something.
  • For example,  a company receives inputs when it takes  raw materials to make a final product.
  • Output is the complete opposite as it is the process of sending something.
  • Service is the productive outcome of  marketing channels that consumers value and desire.
  • By identifying the services to offer for each  target buyer segment, marketers can optimize their sales strategy for each key segment.

To learn more about output from the given link :

brainly.com/question/13736104

#SPJ4

6 0
1 year ago
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