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3 years ago

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?

Business

1 answer:

Veronika [31]3 years ago

6 0

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

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Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is re

VMariaS [17]

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

Calculation for annual demand

Annual demand=138*358 days

Annual demand=49,404

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

Reorder point = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

4 0

3 years ago

When contemplating a product deletion, a firm studies customer migration patterns to determine: the profit contribution of the p

pentagon [3]

Answer: whether customers of the product would switch to other substitute products marketed by the same firm.

Explanation:

Customers regular move from one good to another or from one good to it's substitutes in a process called Customer Migration.

There are various reasons for this such as affordability, change in technology, trends and the like.

When a company contemplates ending a product line and decides to study customer migration patterns, they are checking to see what the customer will switch to when the product is deleted. If they make substitutes to the product to be deleted, they will be checking to see if the customers will switch to these substitutes if the product line is ended.

4 0

3 years ago

rhonda and jade both consider themselves to be african-american, although rhonda has much darker skin and hair than jade. when r

Neko [114]

As Rhonda has much darker skin than Jade, which contributed to why she was told there were no vacancies, then, this type of discrimination based on a color discrimination.

<h3>What is a discrimination?</h3>

It refers to an unfair treatment of people usually because of race sex or religion. It is also an unjust or prejudicial treatment of different categories of people based on the grounds of race, age, gender, disability, height etc.

However, the color discrimination involves treating someone unfavorably because of their skin color complexion. Therefore, as she was told there were no vacancies, then, this type of discrimination based on a color discrimination.

Read more about discrimination

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7 0

1 year ago

A person has a poor credit score due mainly to the amount of debt on credit card and instalment loans. How could the person impr

KIM [24]

Answer: The answer is provided below

Explanation:

The credit score is a number used by lenders to help them decide the likelihood of an individual to repay on time if the person is granted a credit card or a loan. The higher the scores, the likelihood that the person qualifies for credit cards and loans.

A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.

Furthermore, such individual can also keep his or her balances low on the credit cards. A credit card with high debts doesn't represent the individual well when applying for a loan which will lead to a negative credit score.

5 0

3 years ago

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar’s equipment (10-year remaining life)

iogann1982 [59]

Answer:

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

Explanation:

Paar's equipment book value—12/31/15 of $294,000

Add Kimmel's equipment book value—12/31/15 of $190,400

Add Original acquisition-date allocation to

Kimmel's equipment of ($400,000 − $272,000) = $128,000

Less Amortization of Allocation

($128,000/10 years * 3 years) = ($38,400)

<h3>Equals Consolidated Equipment of $574,000 </h3>

The method the parent use will have no effect on consolidated total because it is only for internal reporting purpose.

4 0

3 years ago

1. Given the nominal interest rate of 17​% and the expected inflation of 13​%, then the value of the real interest rate is ___ ?

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?