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Natali5045456 [20]
2 years ago
14

If the annual real rate of interest is 5% and the expected inflation rate is 4%, the nominal rate of interest would be approxima

tely
Business
1 answer:
serg [7]2 years ago
4 0

If the annual real rate of interest is 5% and the expected inflation rate is 4%, the nominal rate of interest would be approximately 9% (5% + 4% = 9%).

What is real rate of interest?

An interest rate that has been prorated for inflation is referred to as a "real interest rate." The nominal interest rate is subtracted from the inflation rate to arrive at the real interest rate. The real interest rate is equal to the nominal interest rate less the inflation rate, to put it mathematically.

What is the inflation rate definition?

The rate of price growth over an extended period of time is known as inflation. The cost of living in a nation has increased, or prices have generally increased. These are examples of broad measures of inflation.

Learn more about real interest rate and nominal interest rat: brainly.com/question/13324776

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Adam Company has 100 units costing $300 in beginning inventory. During the year, the company purchases 900 units for a total cos
shutvik [7]

Answer:

The value of the ending inventory is $ 640

Explanation:

First we have to make a table showing the inventory movements.

Beginning inventory                            100 units                         $    300

Purchases                                             900 units                        $ 2,880

Ending inventory                                   200 units

Adam Company uses the FIFO method which means that the units sold shall be valued at the opening inventory plus purchases. The ending inventory shall be priced at the purchase value.

The unit value for purchases is $ 2,880/900 = $ 3.20 per unit.

So the value of the ending inventory shall be

200 units * $ 3.2 per unit   = $ 640

8 0
2 years ago
Read 2 more answers
______________ give government the power to block certain mergers, and in some cases, to break up large firms into smaller ones.
Sonja [21]

Answer:

Antitrust law

Explanation:

Antitrust law are a collection of federal and state laws which is meant to create a conducive atmosphere for businesses to operate, such that there would be healthy competition among businesses. This law cut across all sectors such as transportation, health, manufacturing industries etc.

Examples of law promulgated for antitrust are the Sherman act, the Clayton act; all of which are responsible for the prohibition of certain practises by business such as illegal price fixing and corporate mergers which could hinder a market from being competitive, hence break them into smaller units.

6 0
3 years ago
Land costing $77,900 was sold for $99,800 cash. The gain on the sale was reported on the income statement as other revenue. On t
Harlamova29_29 [7]

Answer:

$99,800

Explanation:

The statements of cash flows show cash inflows and out flows from the business activities which are recognized as operating, investing and financing activities.

When an asset is sold, the amount received from the sale of the asset is recognized as an inflow in the investing section of the cash flow statement.

The gain/loss from the sale would have been treated in the operating section based on the effect it had in the income statement while computing the net income of the company.

4 0
3 years ago
What are the advantages of taking a criminal case to the criminal grand jury?
sattari [20]
The main advantage<span> of a </span>grand jury<span> is that it provides a system for conducting a legally-binding "dry run" before a formal and protracted </span>criminal trial<span> takes place. </span>
4 0
3 years ago
List at least four investment alternatives.
Ierofanga [76]
Four investment alternatives are hedge funds, futures, stocks, and bonds. If you are looking for more: mutual funds, annuities, and real estate are others.
5 0
3 years ago
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