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3 years ago

Suppose that the nominal rate of interest is 5 percent and the inflation premium is 1 percent.

Business

1 answer:

murzikaleks [220]3 years ago

4 0

Answer:

1. 4%

2. 2%

Interest rates are rounded off to nearest whole number.

Explanation:

Fisher effect formula determines the relationship between the Nominal rate, Real rate and inflation rate.

Fisher effect formula is as follows

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

1 + 5% = ( 1 + real rate ) ( 1 + 1% )

1.05 = ( 1 + real rate ) x 1.01

1 + real rate = 1.05 / 1.01

1 + real rate = 1.0396

real interest = 1.0396 - 1 = 0.0396 = 3.96% = 4%

Inflation premium = [ ( 1+ nominal rate ) / ( 1+ real rate ) ] -1

Inflation premium = [ ( 1+ 6% ) / ( 1+ 4% ) ] -1

Inflation premium = [ ( 1.06 / 1.04 ] -1

Inflation premium = 1.0192 - 1

Inflation premium = 0.0192

Inflation premium = 1.92%

Inflation premium = 2%

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The Atomic Energy Commission (AEC) was engaged in rulemaking proceedings for nuclear reactor safety. An environmental group sued

olga_2 [115]

Answer:

The Supreme court will revise the ruling from the Federal Court

Explanation:

When the Atomic Energy Commission appeals to the Supreme Court due to dissatisfaction from the Federal court's verdict, it is the duty of the supreme court to take some moment to look critically into the issue and weigh the premises in which the Federal Court's verdict was passed in favour of the environmental group.

After taking a critical look at the various arguments raised by the environmentalist and the court's ruling, it is obligatory for the Supreme court to decisively call the attention of AEC to the reasons raised and make provision to address such , bearing in mind that there was no previous discussion between the two parties prior to seeking court's attention in this regards.

5 0

3 years ago

The two aspects of the process for evaluating the results of a marketing decision are evaluating the decision itself and _______

sleet_krkn [62]

The appropriate response is the third one. This perspective is vital to check regardless of whether the versatile test ran effectively, you can open the test report. You can likewise see each recorded useful activity in the report.

3 0

3 years ago

Webster Corporation's monthly projected general and administrative expenses include $5,600 administrative salaries, $3,000 of ot

SCORPION-xisa [38]

Answer:Total general and administrative expenses budget per month =$10,250

Explanation:

Total general and administrative expenses are the compulsory costs to ensure that a company's day to day operations is maintained whether or not the company is making profit.

General and administrative expenses includes Rent, Utility bills, insurance wages and benefits, depreciation of office furnitures, Office supplies and are regarded as operating expenses and therefore interest paid on a bank loan is not an operating expenses but a financing activities and will not be considered as an administrative expense.

Administrative expenses= administrative Salaries+Other cash administrative expenses+Depreciation

=$5,600+$3,000+$1,650

=$10,250

4 0

4 years ago

Brief exercise 1-9 at the beginning of the year, morales company had total assets of $816,000 and total liabilities of $526,000.

kramer

<u>Calculation of amount of stockholders' equity at the end of the year:</u>

At the beginning of the year, Morales Company had total assets of $816,000 and total assets increased $178,000 during the year, hence Total Assets at the end of the year shall be 816000+178000 = $994,000

At the beginning of the year, Morales Company had total liabilities of $526,000 and total liabilities decreased $82,000 during the year. Hence Total Liabilities at the end of the year shall be 526000-82000 = $444,000

Now we can calculate amount of stockholders' equity at the end of the year as follows:

Equity = Assets – Liabilities

= 994,000-444,000

= $550,000

Hence, the amount of stockholders' equity at the end of the year shall be <u>$550,000</u>

6 0

3 years ago

Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then s

Ivan

Answer:

c.relinquish

Explanation:

-Reap means to receive a compensation.

-Harvest means to collect or gather something.

-Relinquish means to voluntarily give control of something to someone else.

-Co-opt means to accept someone in a group by decision of the other members.

According to this, Ned intends to relinquish his business because his plan was to give the control of the company to someone else by selling it so it could be taken to the next level.

7 0

4 years ago