All categories

3 years ago

If real gross domestic product (GDP) grew by 2 percent and the inflation rate was 2 percent, then nominal GDP grew by

Business

1 answer:

ohaa [14]3 years ago

6 0

Answer:

Explanation:

If the real gross domestic product for the year grew by 2%

The inflation rate also grew by 2%

Then nominal GDP rate can be calculated as follows

= Real GDP + inflation rate

= 2% + 2%

= 4%

Hence the nominal gross domestic product grew by 4%

You might be interested in

A lender is willing to provide a loan equal to 80% of a property worth $360,000. If such a loan carries an interest rate of 7.5%

lukranit [14]

Answer:

B) $11,750

Explanation:

annual mortgage payment = net operating income - (outstanding loan balance x loan payment factor)

outstanding loan balance = property value x loan percentage

annual mortgage payment = $40,000 - [($360,000 x 80%) x 0.09809] = $40,000 - ($288,000 x 0.09809) = $40,000 - $28,250 = $11,750

5 0

3 years ago

Farrokh and Scheherezade Sharabianlou agreed to buy a building owned by Berenstein Associates for $2 million. They deposited $11

s2008m [1.1K]

Answer:

This was an actual court case that ended in the Court of Appeals of the First District of California. Initially a lower court had ruled against the Sharabianlous and set extremely high compensations for damages to Berenstein. I do not understand why the court did it since it was proven that the land was contaminated and couldn't be sold under unless cleaned.

Finally, the court of appeals ruled in favor of the Sharabianlous, not because they thought they were right, but due to errors in the original trial.

The big issue in this case was that the contract signed by the Sharabianlous wasn't clear enough about what would happen if the land was not suitable for sale and they also failed to seek a lawyer when the contamination issues became obvious. If you read the case, even the real estate broker acted against the Sharabianlous when the property was appraised since he didn't tell the appraiser about the contamination issues.

The final ruling was made in 2010, 8 years after the parties engaged in the transaction, which gives us an idea of how complicated things can get when legal procedures are not followed, even though the outcome should be obvious.

If I was part of a jury and the case was about property that couldn't be sold due to contamination, I would probably vote in favor of the buyer, not the seller. It's common sense, but sometimes it you do not follow the appropriate legal path, common sense makes no sense at all.

6 0

3 years ago

Teal Mountain Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sandhill Company. The

juin [17]

Answer:

Fair value $238,500

Less: PV of residual value $17,687 (19500*0.90703)

PV of lease payment $220,813

Annual lease = 220813/1.85941

Annual lease = $118,754

Date Account titles and Explanation Debit Credit

1/1/17 Lease receivables $238,500

Cost of goods sold $172,313

Sales $220,813

Inventory $190,000

(To record the lease)

12/31/17 Cash $118,754

Lease receivables $106,829

Interest revenue(238,500*5%) $11,925

(To record the receipts of lease installments)

12/31/18 Cash $118,754

Lease receivables $112,170

Interest revenue(238,500-106829*5%) $6,584

(To record the receipts of lease installments)

12/31/18 Cash $19,500

Lease receivables $19,500

(To record sales of equipment at the end of the lease)

7 0

3 years ago

Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on t

Natasha2012 [34]

Answer: b. (200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars)

Explanation:

The opportunity cost of an airplane is 50 cars. This means that if the number of planes produced were reduced by 50, the number of cars should increase by:

= 50 * 50

= 2,500 cars.

In option B, the airplanes were 200 and then reduced by 50 to 150. This led to an increase in cars of:

= 15,000 - 12,500

= 2,500 cars

Option B therefore satisfies the constraints and is correct.

5 0

3 years ago

Retail Division $155,800 $550,000 Commercial Division 134,000 330,000 Internet Division 146,400 540,000 Assume that management h

Karolina [17]

The Residual Income for each division:

Retail Division = $4,95,000

Commercial Division = $2,97,000

Internet Division = $4,86,000

Retail Division Commercial Division Internet Division

A. Operating Income $155,800 $134,000 $146,400

B. Minimum acceptable operating income as a % of invested assets:

Retail Division Commercial Division Internet Division

Invested assets $550,000 $330,000 $540,000

(Invested assets x 10%) = $55,000 $33,000 $54,000

C = A - B Residual Income =$4,95,000 $2,97,000 $4,86,000

<h3>What is Residual Income?</h3>

Residual Income refers to a calculation that provides the amount of money leftover that a company or individual has after all expenses have been paid. The amount of money that is left over after all expenses are covered is typically referred to as residual income, profit, net income, or earnings.

One specific type of meaning for residual income is similar to the terms passive income or residual pay—in that it can represent income earned on a continual basis, not tied to specific amounts of time, and not requiring active work to generate.

Learn more about Residual Income on:

brainly.com/question/22985922

#SPJ4

7 0

2 years ago