Answer:
nominal interest rate = 5%
real interest rate = 3%
Explanation:
given data
deposit previous = $2,000
deposit present = $2,100
CPI consumer price index rises = 200 to 204
to find out
nominal interest rate and real interest rate
solution
we get here first nominal interest rate that is express as
nominal interest rate = ( deposit present - deposit previous ) ÷ deposit previous × 100 ..........................1
put here value we get
nominal interest rate = × 100
nominal interest rate = 5%
and
now we get here inflation rate that is
inflation rate = ( CPI present - CPI previous ) ÷ CPI previous × 100 .............2
inflation rate = × 100
inflation rate = 2%
and
real interest rate will be as
real interest rate = nominal interest rate - inflation rate .................3
real interest rate = 5% - 2%
real interest rate = 3%
I don’t understand what you are trying to say or what your question is?
Answer:
B. Credited Gain on fluctuation of foreign currency for $1,170
Explanation:
The journal entry to record the collection of foreign receivables is provided
Account Titles and Explanation Debit Credit
Cash 40,170
(3,900,000 * 0.0103)
Foreign reserve 39,000
(3,900,000 * 0.01)
Gain of fluctuation of foreign currency 1,170
(3,900,000 * 0.0003)
Hence, the correct option is Credited Gain on fluctuation of foreign currency for $1,170
Answer:
Deferred tax is increased by $130 million
Explanation:
We have given income = $400 million
Company is subject to a tax rate of 40 %
So tax rate = 40 %
So current Tax = $400×40%= $160 Million
Decrease in deferred tax assets of 50 million result in increase in tax expense
Hence total Tax Expense= $160+$50= $210 Million
But it is given that expense is only $80 million
So change in deferred tax is increases by = $210 - $80 = $130
So deferred tax is increases by $130 million
Answer is D. time spent making a journal entry