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aleksklad [387]
3 years ago
9

Susan put her savings into a mutual fund that paid a nominal interest rate of 3 percent a year at the beginning of 2005. the cpi

was 225 at the beginning of the year and 232 at the end of the year. susan earned a real interest rate of _____ percent a year. round your answer up to the second decimal.
Business
1 answer:
Ksju [112]3 years ago
8 0

Answer:

-0.11% per year

Explanation:

Here, we want to calculate real interest rate.

Firstly, we calculate the inflation rate

mathematically the inflation rate = (cpi at the end of year - cpi at the beginning of year)/cpi at the beginning of year * 100%

Inflation rate = (232-225)/225 * 100% = 3.11%

we now proceed to calculate the real interest rate

mathematically, real interest rate = Nominal interest rate - inflation rate

from the question, nominal interest rate = 3%

real interest rate = 3% - 3.11% = -0.11%

This means that the real interest rate earned by sally is -0.11% per year

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As part of the American Recovery and Reinvestment Act, $7 million was earmarked to build a bridge over a railroad crossing so th
krek1111 [17]

Answer: B) The costs were highly diffused while the benefits were very concentrated

Explanation: The American Recovery and Reinvestment act was enacted by congress and passed into law in 2009. The act which was aimed at alleviating the burden and promoting economic growth after the 2008 recession. It was meant to serve as a palliative or stimulus to aid economic recovery. The $7 million proposal earmarked to erect a bridge over the railway crossing was passed into law due to the fact that the benefits, relief and succor which the bridge provides to the over 168 Nebraskans coupled with the subsidized or diffused cost of putting the bridge in place were decisive factors towards acceptance of the proposal.

5 0
3 years ago
High Plains Inc. manufacturers furniture in North Dakota. High Plains receives its wood from a lumber yard in Calgary. The lead
ArbitrLikvidat [17]

Answer:

a. On average, the number of boards they have on order  = 1,056 boards.

b. On average, the number of boards they have =560 boards.

c. Total holding cost per week = $140.

d. Holding cost incurred per board = $ 0.25.

Explanation:

In the question, the details given are:

Service level =96 %

Lead time =3 weeks

Weekly demand =150

Standard deviation=200

This is a case of variable demand and constant lead time

a. Reorder point =Demand during lead time +Safety stock

=Average weekly demand*lead time+z*sqrt(lead time)*standard deviation of weekly demand

=150*3+NORMSINV(0.99)*sqrt(3)*200

=450+1.7507*sqrt(3)*200

=450+606.46=1,056.46

=1,056 (nearest whole number).

On average, the number of boards they have on order  = 1,056 boards.

b. For a normal distribution,

z=x-mean/std deviation

z-value for a 96% confidence level = 2.05

2.05=x-150/200

x = 150+2.05*200=560

On average, the number of boards they have =560 boards.

c.Total holding cost per week=Average inventory *holding cost per week=560/2 *0.5=280*0.5 =$140

d.Holding cost incurred per board =Total holding cost /Number of boards =140/560 = $ 0.25.

5 0
3 years ago
a retailer has been selling 2800 tablet computers a week at $250 each. the marketing department estimates that an additional 80
Nataly_w [17]

From the given information, The demand function is (P) = -x/8 + 600. The demand function illustrates the causal connection between the quantity of a commodity that is demanded and its numerous determinants.

The demand function is given by P - P1 = m(x-x1)

Since, m = -10/80    (i.e. additional 80 tablets every $10)

P1 = $250, x1 = 2800

So, P - 250 = -1/8 (x - 2800)

P = -1/8 + 350 +350

P = -x/8 + 600

Hence, the demand function (P) = -x/8 + 600

  • One variable's connection with its determinants is described by the demand function. It explains how much of a certain amount of products is bought at various prices for that good and its related goods, various income levels, and various values for other demand-affecting variables.

There are two categories of demand function:

  • The linear demand function
  • Nonlinear Demand Function

Without needing to create a demand function graph, an algebraic formula for constructing demand curves is known as a linear demand function.

Demand function with nonlinearity. The slope of the demand curve (P/Q), in a nonlinear or curved demand function, varies along the demand curve.

Learn more about Demand function, here

brainly.com/question/28198225

#SPJ4

5 0
1 year ago
A paint manufacturing company produces three paint bases of differing quality. Due to throughput limitations (measured in gallon
Tems11 [23]

Answer:

c. The contribution margin per gallon of throughput for each product

Explanation:

contribution margin per gallon = Revenue per gallon - variable cost per gallon.

Contribution margin would enable the company to know the amount each product earns in excess after variable cost has been subtracted from revenue.

the product with the highest contribution margin should be considered.

8 0
3 years ago
a boy is three years younger than his sister. two years ago he was two-thirds of his sister's age. what are their present ages ​
padilas [110]

Answer:

The boy: 8 years old

The sister: 11 years old

Explanation:

We assume that the age at present of the boy is x (years old).

As he is younger than his sister 3 years, so that his sister's present age is great than x 3 years

=> Her present age is: x + 3 (years old)

Two years ago, the boy is younger than present two years

=> The boy's age two years ago is: x - 2 (years old)

Similarly, the sister's age two years ago is: (x+3)-2 = x + 1 (years old)

As given, two years ago he was two-thirds of his sister's age, so that we have:

<em>The boy's age two years ago = </em>\frac{2}{3}<em> × the sister's age two years ago</em>

⇒ x - 2 = \frac{2}{3}(x+1)

⇒ x - 2 = \frac{2}{3}x + \frac{2}{3}

⇒ x - \frac{2}{3}x =  \frac{2}{3} + 2

⇒ \frac{1}{3} x = \frac{8}{3}

⇒ x = \frac{8}{3}. 3 = 8

=> x + 3 = 8 + 3 = 11

So the present age of the boy is 8 years old, of the sister is 11 years old

5 0
3 years ago
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