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3 years ago

What factors affect the time value of money and the cost of borrowing money?

1 answer:

5 0

1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing

2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.

3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.

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City A, City B, and City C are cooperating to build a community center catering to the three cities. Seats on the 10-member comm

muminat

Answer:

city A = 3 members in the committee

city B = members in the committee

city C = 4 members in the committee

Explanation:

City A: 18,000 people

City B: 21,000 people

<u>City C: 22,000 people</u>

total 61,000 people

A seat in the committee will be assigned for every 6,100 people

city A = 18,000 / 6,100 = 2.95 ⇒ city A will get 2 + 1 = 3 members in the committee

city B = 21,000 / 6,100 = 3.44 ⇒ city B will get 3 + 0 = 3 members in the committee

city C = 22,000 / 6,100 = 3.61 ⇒ city A will get 3 + 1 = 4 members in the committee

2 + 3 + 3 = 8, there were 2 remaining committee members that should be divided using the size of the remainders: 0.95 > 0.61 > 0.44

8 1

4 years ago

Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account pays 3 percent interest per ye

Leto [7]

Answer:

d) $6,000, -$6,000

Explanation:

Accounting profit = total revenue - explicit costs

=6000 x 2.5-9000 = $6000

Economic profit = accounting profit - interest on capital invested

=6000 - 400000 x 0.03

=$-6000

4 0

3 years ago

Joy is taking out a car loan which she’ll pay back with interest. Which option will require her to pay the lowest amount in inte

Mice21 [21]

Lowest amount of interest would be annual compounding.

6 0

3 years ago

Benz corporation produces a filter that has a per unit cost of $18. the company would like a 30% markup. using cost-plus pricing

Strike441 [17]

The unit selling price of the selling price is equal to the sum of the original price and the amount that should be added for the marking-up, which is equal to 30% of the original per unit cost. This can be calculated through the equation below.

per unit selling price = ($18)(1.30) = $23.4

ANSWER: $23.4

5 0

3 years ago

A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of

Serhud [2]

Answer:

Franchising

Explanation:

Franchising is defined as the contract that exists between a parent company (franchisor) and other firms (franchisee) in which an operating licence is given to the franchisee.

The franchisor gives access to use of their brand and also provides support and training to the franchisee.

Franchisee in turn gives an agreed amount of profit to the franchisor for using their brand.

An established name and specific rules of operation is agreed upon in the contract.

4 0

3 years ago