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devlian [24]
3 years ago
10

If a person has money invested at 9 percent and the rate of inflation is 5 percent, how much return are they actually making on

their investment?
Business
2 answers:
madreJ [45]3 years ago
8 0

Answer:

4%

Explanation:

It is given that a person has money invested at 9 percent and the rate of inflation is 5 percent.

We need to find the actual interest rate.

Real interest rate = Rate of interest - Rate of inflation

Substitute the given values in the above formula to find the actual interest rate.

Real interest rate = 9% - 5%

Real interest rate = 4%

Therefore, the real interest rate on their investment is 4%.

makvit [3.9K]3 years ago
7 0

Answer:

1. An index determined by measuring the price of standard goods brought by urban consumers.

2. Producers raise prices to meet increased cost.

3.  Demand-pull theory.

4. It rises

5. 4 percent.

Explanation:

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Management at the Flagstaff Company currently sells its products for $250 per unit and is contemplating a 40% increase in the se
elena-s [515]

Answer:

393 units will need to be sold to breakeven

Explanation:

Break even point is the point where a Company makes neither makes a profit nor a loss.

Step 1 : Calculate new variables

New Sales = $250 x 1.40 = $350

Variable Costs = $250 x 30 % = $75

New Fixed Costs = $120,000 x 90 % = $108,000

Step 2 : Break even (units)

Break even (units) = Fixed Costs ÷ Contribution per unit

                               = $108,000 ÷ ($350 - $75)

                               = 393 units

Thus, 393 units will need to be sold to breakeven

8 0
2 years ago
What are things you can do to manage the risks in your life to reduce any financial losses?
son4ous [18]
You can create a budget plan to cut out the risks of any unneeded financial expenses and to know that you should pay for things you need before you pay for unneeded items.
7 0
3 years ago
What is one action an employer can take to lower wage levels?
Nastasia [14]
The right answer for the question that is being asked and shown above is that: "c. Replace some workers with machines." one action an employer can take to lower wage levels is that <span>c. Replace some workers with machines.</span>
7 0
3 years ago
Suppose your company needs $14 million to build a new assembly line. your target debt-equity ratio is 0.84. the flotation cost f
Leviafan [203]

Suppose your company needs $14 million to build a new assembly line. your target debt-equity ratio is 0.84. the flotation cost for new equity is 9.5 percent, but the floatation cost for debt is only 2.5 percent. The amount required to build a new assembly line = is $ 14 million.

Equity represents the price that could be lower back to an agency's shareholders if all of the property has been liquidated and all of the business enterprise's debts were paid off. We also can consider equity as a diploma of residual possession in a company or asset after subtracting all debts related to that asset.

Equity is the possession of any asset after any liabilities associated with the asset are cleared. for example, in case you very own a vehicle well worth $25,000, but you owe $10,000 on that car, the car represents $15,000 fairness. it is the price or interest of the maximum junior magnificence of investors in assets.

In conclusion, stocks are referred to as equities because they constitute possession in organizations. They permit buyers advantage from boom but also have a chance while enterprise conditions weaken. In the subsequent time, we'll explore the variations between shares and bonds.

Debt equity ratio (debt/equity) = 0.84/1

Therefore total assets = debt + equity = 0.84 + 1 = 1.84

Flotation Cost Percentage formula = Weight of debt x Floataion Cost of debt + Weight of equity x Floataion Cost of equity

= (0.84 / 1.84) 2.5% + (1/1.84)9.5%

= 1.1413% + 5.1630%

= 6.3043%

Amount to be raised to purchase building = Cost of building / ( 1 - Total Floatation Cost Percentage)

= 14/(1-6.3043%)

= 14/0.9370

= 14.94 million

Learn  more about equity here brainly.com/question/26507171

#SPJ4

3 0
1 year ago
E-commerce can be defined as: Question 48 options: A) the digital enablement of transactions and processes within an organizatio
Alisiya [41]

Answer:

C) the use of the Internet, the Web, and mobile apps to transact business

Explanation:

E-commerce refers to the economic commerce in which the buying and selling of goods and services are involved over and above electronic networks that we called the internet. It could be done in the following ways

1. Business to customer =  B2C

2. Business to business = B2B

3. Customer to customer = C2C

And many more

By using mobile applications, the customer could easily order their products that are to be shown in different applications

Therefore the option C is correct

3 0
3 years ago
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