Answer:
Borrow in dollars then at spot rate convert money to british pound. Invest in the pounds for half a year and convert back to dollars.
Explanation:
Access to credit = $20000000
We do a conversion to pounds
= 20000000/2
= £10000000
When this is invested for 6 months
10000000 x 1 +4% x6/12
= 10000000(1+0.04*0.5)
= 10000000x1.02
= 10200000
We then make a conversion back to dollars
10200000 x 2.2
= 22,440,000 dollars
Loan to be repaid
20000000(1+6%x6/12)
= 20000000 x 1 +0.06*0.5
= 20000000 x 1.03
= 20,600,000
Then arbitrage profit = 22440000 - 20600000
= 1840000
$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss
When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).
Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.
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Answer: He could borrow from one of the following options:
(a) $18,605
(b) $11,428
(d) $20,000
Explanation:
If Owen borrows $18,605
Bank interest rate = 7.1% of $18,605
=7.1/100 ×$18,605
=$1, 320.955
Owen's debt at his bank=
$18,605+$1,320.9555 =
$19,925.955
When Owen receives the trust fund of $25,000, he can pay his debt and still has $5,074.045 with him.
If Owen borrows $11,428
Bank interest rate = 7.1% × $11,428
=$811. 388
Owen's debt at his bank=
$811.388+$11,428 =
$12,239.388
When Owen receives the trust fund of $25,000, he can pay his debt and still has $12,760.612 left with him.
If Owen borrows $20,000
Bank interest rate =7.1% of $20,000
=7.1/100 ×$20,000
=$1, 420
Owen's debt at his bank=
$20,000 + $1,420 = $21,420
When Owen receives the trust fund of $25,000, he can pay his debt at his bank and still has $3,580 left with him.
Answer:
We fix it by committing to the customer and setting up an environment to support it.
If the market for a good that sees its production costs and prices rise is inelastic, the quantity demanded will not change.
<h3>What is inelastic demand?</h3>
A good that has inelastic demand is one that will not see its demand change much when there is a price change.
This means that demand remains more or less the same even if prices rise. Examples of such goods are water and food. The product above will therefore not see its demand change by much.
Find out more on inelastic demand at brainly.com/question/24384825.
