Answer:
C) 9.00; 8.92
Explanation:
The arithmetic rate of return is given by:

The geometric rate of return is given by:
![R_{G} =  (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} =  (1.0892-1) *100 \%\\R_{G} =  8.92](https://tex.z-dn.net/?f=R_%7BG%7D%20%3D%20%20%28%5Csqrt%5B4%5D%7B%281.11%2A1.03%2A1.08%2A1.14%29%7D%20-1%29%20%2A100%20%5C%25%5C%5CR_%7BG%7D%20%3D%20%20%281.0892-1%29%20%2A100%20%5C%25%5C%5CR_%7BG%7D%20%3D%20%208.92)
Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent
The answer is C) 9.00; 8.92.
 
        
             
        
        
        
Answer:
The amount of investment should be $1926.891 approximately
<u>Explanation:</u>
The following formula has been used to calculate the amount of investment 
A = P(1+r/100) ^n
where: A = future value
, P = present value
, R = rate of interest
, N = time period
Hence
, applying the formula, we get,
$5500 = P (1+6/100) ^18
Hence P=$5500/ (1.06) ^18
=$1926.891(approx)
 
        
             
        
        
        
Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
                                Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
 
        
             
        
        
        
Answer:
Either the price level or real GDP must increase
Explanation:
Gross Domestic Product (GDP) is used to measure the economic growth, purchasing power, and overall economic health of a country. nominal Gross Domestic Product, measures the value of all final goods and services produced within a country’s borders at current market prices. It takes change in prices and interest rates, inflation and money supply into account when calculating a country’s gross domestic product. Real GDP takes nominal GDP and adjusts for inflation or deflation by comparing and converting prices to a base year’s prices. For nominal GDP to rise there must be increase on either the price level or real GDP.
 
        
             
        
        
        
Answer:
the revised net operating income is   $ 26,400
Explanation:
Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.
                           Revised Income Statement
Sales( (12,900 units x 2)× ($20 per unit×0.90))      $ 464,400
Variable expenses ( $10× (12,900 units x 2))         ($ 258,000)
Contribution margin                                                  $206,400
Fixed expenses (144,000  + $36,000 )                    ($180,000)
Net operating loss                                                     $ 26,400