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DochEvi [55]
3 years ago
8

With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate

of inflation was expected to be 4%, the bank would most likely charge the firm an annual interest rate of rev:________________
Business
1 answer:
MAXImum [283]3 years ago
8 0

Answer:

The nominal interest rate which the bank will offer is of 10.24%

Explanation:

according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:

\frac{1+r_n}{1+ \theta} -1 =r_e

(1+r_e)(1+ \theta) -1 = r_n

1.06*1.04-1 = 0.1024 = 10.24%

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1. Analysis How many burritos will the producer supply at the price of $1? In your opinion, what is the reason for that quantity
amm1812

The number of burritos that will be supplied depends on the costs the supplier incurs.

You did not include any charts that can be used to answer this specific question so I will give a general answer.

When a supplier is deciding the price at which to supply a good, they look at:

  • Their costs both fixed and variable
  • The price others are charging
  • The demand for the good

The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.

In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.

<em>Find out more at brainly.com/question/1908405.</em>

8 0
2 years ago
A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly
Harman [31]

C. Product line extension.

7 0
2 years ago
If a business filing bankruptcy has assets in the United States and one or more foreign countries, that business should file und
Juli2301 [7.4K]
The right answer for the question that is being asked and shown above is that: "C. chapter 15." If a business filing bankruptcy has assets in the United States and one or more foreign countries, that business should file under: <span>C. chapter 15</span>
3 0
2 years ago
I can only put away $2,000 a year toward retirement. I am 25 and plan on retiring at 65 and earning 5%. How much will I have at
Scorpion4ik [409]

Answer: $241,600

Explanation:

As this amount is a constant amount, it is an annuity. To find out the total amount after a certain period of time, use the future value of annuity formula.

Future value of annuity = Amount * [ {( 1 + rate) ^number of periods - 1} / rate]

Number of periods = 65 - 25 = 40

Future value of annuity = 2,000 * [ {(1 + 5%)⁴⁰ - 1} / 5%]

= 241,599.54

= $241,600

3 0
3 years ago
An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares of stock. An angel investor
nikitadnepr [17]

Answer:

the post money valuation of the company is $1,750,000

Explanation:

The computation of the post money valuation is shown below:

Given that

Value of 400,000 shares is  $1 million.

So,

The Value of 1 share is

= $1 million ÷ 400,000

= $2.5

And,  

Total number of shares is

= 400,000 + 200,000 + 100,000

= 700,000

Now  

Total value of shares is

= $2.5 × 700,000

= $1,750,000

hence, the post money valuation of the company is $1,750,000

6 0
2 years ago
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