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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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Sandhill Corporation loaned $590000 to another corporation on December 1, 2020 and received a 3-month, 6% interest-bearing note
Oksi-84 [34.3K]

Answer: Debit Interest Receivable and credit Interest Revenue, $2950

Explanation:

Based on the information given in the question, we have to calculate the interest accrued and this will be:

= $590,000 × 6% × 1/12

= $590,000 × 0.06 × 0.08333

= $2949.882

= $2950 approximately

Therefore, the adjusting entry that Sandhill should make on December 31, 2020 will be to:

Debit Interest Receivable and credit Interest Revenue, $2950

6 0
2 years ago
BarkBark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. Th
Alexus [3.1K]

Answer:

Integration

Explanation:

Intergration can be defined as a scenario where a group of people with a particular culture decide to adopt another culture without sacrificing characteristics of their present culture.

In the given scenario Bark Bite has two sets of employees with overlapping values they can use to form a new culture. If the different groups adopt the new culture without sacrificing their old one it is called culture intergration.

This is the type of cultural merge the company needs at this time

8 0
3 years ago
The upper-level managers of Premium Java are meeting to discuss the company's long-range goals and vision. Like any organization
adell [148]

Answer:

The answer is False

Explanation:

The upper-level managers of Premium Java should do it for three reasons:

1. To provide direction and momentum - Delivering company's long-range goals and vision to the employees is the responsibility of the leadership.

2. To encourage retention of high-value employees - Once the employees understand the goals and vision of the company, this will enable the organisation to gain commitment of the employees, thus reduced employees' turnover will be faced.

3. To develop a sustainable competitive advantage - organisation will be able to attain a sustainable competitive advantage, as a result of the above two.

4 0
3 years ago
The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Re
stiv31 [10]

The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Revenue, and Selling, general, & administrative expense/Revenue.

What ism financial ratios?

Financial ratios are instrument used by companies to make comparison or to  measure the relationship  between  different financial statement information or data.

Hence, the three financial ratios that constitute return on revenue  are:

  • Cost of goods sold/Revenue
  • Research & Development expense/Revenue
  • Selling, general, & administrative expense/Revenue

Learn more about financial ratios here:brainly.com/question/9091091

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6 0
2 years ago
Assume an investor thinks the stock market is about to undergo a sharp retreat. under these conditions, the investor’s best cour
Svetach [21]

Assume an investor thinks the stock market is about to undergo a sharp retreat. under these conditions, the investor’s best course of action would be to interest rate future.

Buyers and sellers can trade equity shares of public firms in stock exchanges. Due to their ability to democratize access to investor trading and capital exchange, stock markets are essential elements of a free-market economy. Prices are discovered and traded in stock markets in an efficient manner.

Shares of publicly traded corporations are traded in stock market. In an initial public offering (IPO), corporations sell shares to the general public on the primary market in order to raise money.

Learn more about stock market here

brainly.com/question/18124452

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3 0
1 year ago
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