How much education or training do you need for a airline pilot study.com?

ou read in a newspaper that the nominal interest rate is 12 percent per year in canada and 8 percent per year in the u.s. suppos

diamong [38]

The real interest rate in US and Canada are same.

As inflation in Canada is higher, its value will depreciate again the US dollar.

This scheme actually loses money as the amount of loan to be returned is 1.08 USD

a. Using Fisher's equation,

nominal interest rate ~ real interest rate + inflation.

real interest rate = nominal interest rate - inflation

Thus, as the real interest rate in US and Canada are same,

Nominal rate Canada - Inflation Canada = Nominal Rate US - Inflation US

12% - inflation Canada = 8% - Inflation US

Inflation Canada = 4% + Inflation US

Thus inflation in Canada will be 4% higher than in US

b. As inflation in Canada is higher, its value will depreciate again the US dollar. i.e the US dollar will get stronger and Canadian dollar will get weak. The change in the value will be 4%.

c.

Let 1 USD = 1 CAD and amount borrowed be $1 in US for a year.

Amount payable in US after 1 year = $1 * (1 + 8%) = $1.08

Amount converted to CAD = CAD 1

Amount in CAD after 1 year = CAD 1*(1+12%) = CAD 1.12

New Exchange rate after 1 year = 1 * (1 + 4%) = 1.04 i.e 1 USD = 1.04 CAD (i.e USD costs more in CAD)

Amount in USD converted from CAD = 1.12/1.04 = 1.0769 ~ 1.077 USD

Thus, this scheme actually loses money as the amount of loan to be returned is 1.08 USD which is more than 1.077USD earned from CAD interest rates. (This is even without considering the exchange rate transaction fees etc.)

The interest rate is the quantity a lender prices a borrower and is a percentage of the essential—the quantity loaned. The hobby charge on a mortgage is typically referred to on an annual foundation referred to as the annual percentage charge (APR).

An interest rate is the amount of interest due in step with length, as a proportion of the quantity lent, deposited, or borrowed. the entire interest on an quantity lent or borrowed depends on the main sum, the hobby price, the compounding frequency, and the duration of time over which it's far lent, deposited, or borrowed.

An interest rate tells you ways high the price of borrowing is, or excessive the rewards are for saving. So, if you're a borrower, the hobby price is the quantity you're charged for borrowing money, proven as a percentage of the total quantity of the loan.

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4 0

1 year ago

What step is NOT likely to reduce possible attacks to an organization: Select one: a. Restart the Active Directory database b. I

natulia [17]

Answer:

The correct answer would be option A, Restart the active directory database.

Explanation:

When there is an attack on organizational data or information systems, there are many measures that need to be taken to avoid such attacks to make sure that these attacks don't happen again and to check that all systems are working correctly or not. So in this regard, option A is the most appropriate one, because restarting a database will not help in reducing the possible attacks to an organizational data or information systems. Anti virus spyware, installing firewall and ensuring the working of all patches for an operating system and application are more important tasks to do in such situation.

3 0

3 years ago

Read 2 more answers

Butler Corporation is considering the purchase of new equipment costing $78,000. The projected annual after-tax net income from

True [87]

Answer:

-$7,621

Explanation:

Calculation to determine the net present value of the machine

Using this formula

Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested

Let plug in the formula

Net present value of the machine=($2,800+$26000*2.4437)-$78,000

Net present value of the machine=($28,800*2.4437)-78,000

Net present value of the machine=$70,379-$78,000

Net present value of the machine=-$7,621

Therefore the Net present value of the machine is -$7,621

5 0

2 years ago

An end-of-aisle price promotion changes the price elasticity of a good from −2 to −3. Suppose the normal price is $34, which equ

Vika [28.1K]

Answer:

MC = $17

P = $25.5

Explanation:

We proceed as follows;

Firstly calculate MC when e = -2, where MR = MC

(P-MC) / P = 1 / IeI

Here P = $34 and e = -2

(34 - MC) / 34= 1/ I-2I

(34 - MC) / 34= 1 / 2

78-2MC = 34

2MC = 34

MC = 34/2

MC = 17

Now, as we have MC, we will calculate the new price when e = -3

(P-MC) / P = 1 / IeI

(P - 17) / P = 1 / I-3I

(P - 17) / P = 1 / 3

3P -51 = P

2P = 51

P = 51/2

P = 25.5

8 0

3 years ago

1. is stay-alive inc. an effective team? why or why not? 2. how were the various team behaviors performed in this agency? what r

andre [41]

Is Stay-Alive Inc. an effective team because properly attend meetings. Distinct teams perform different functions at Stay-Alive Inc., which has a hierarchical organization. Proper teamwork, the organization has grown more effective. Encourage staff to work and ensure that new technology is employed in the workplace. In team building, major disagreements and misunderstandings arise.

What is team?

A team is an individual or group of people, all working together to achieve a common goal. Teamwork is the most important thing in the organization.

Is Stay-Alive Inc. staff at least attend 5 meetings in a week. Is Stay-Alive Inc. as hierarchical structure of team work. The organization benefits from proper team building. Employees need to be well trained and motivated in their jobs. In a team-building session, conflict and communication hurdles are generated.

As a result, Is Stay-Alive Inc. an effective team and improving performance.

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7 0

1 year ago