Answer:
1. 4%
2. 2%
Interest rates are rounded off to nearest whole number.
Explanation:
Fisher effect formula determines the relationship between the Nominal rate, Real rate and inflation rate.
Fisher effect formula is as follows
1 + nominal rate = ( 1 + real rate ) ( 1 + inflation rate )
1.
1 + 5% = ( 1 + real rate ) ( 1 + 1% )
1.05 = ( 1 + real rate ) x 1.01
1 + real rate = 1.05 / 1.01
1 + real rate = 1.0396
real interest = 1.0396 - 1 = 0.0396 = 3.96% = 4%
2.
Inflation premium = [ ( 1+ nominal rate ) / ( 1+ real rate ) ] -1
Inflation premium = [ ( 1+ 6% ) / ( 1+ 4% ) ] -1
Inflation premium = [ ( 1.06 / 1.04 ] -1
Inflation premium = 1.0192 - 1
Inflation premium = 0.0192
Inflation premium = 1.92%
Inflation premium = 2%
Answer: B
Explanation: consumers buy product to maximize SATISFACTION and not for profit motive. They are expected to buy at the point where price of commodity = marginal utility of the commodity I.e PX = MUx
The choice of answers are incomplete and as such i will answer your question as much as i can.
Answer:
creating (and maintaining) long-term customer relationships.
Explanation:
From the question above, Gina's retail store policy which reads "Without our customers, we don't exist", shows that for Gina stores to remain open, it requires the patronage of its customers.
With this idea embedded in the minds of Gina and her staff, creating and maintaing long term customer relationships are very important as it ensures that customerskeep coming back to Gina's store to patronise her.
A few ways to create and maintain long term customer relationships include great customer service, service delivery, etc.
Cheers.
Answer:
the retained earnings balance as on Dec 31,2020 is $72,900
Explanation:
The computation of the retained earnings balance as on Dec 31,2020 is given below:
Ending retained earning balance = Opening retained earnings + net income - dividend paid
= $49,000 + $55,900 - $32,000
= $72,900
hence, the retained earnings balance as on Dec 31,2020 is $72,900
Answer and Explanation:
The journal entries are shown below:
For Vaughn:
Equipment $16,080
Accumulated Depreciation $25,460
To Equipment $37,520
To Cash $4,020
(Being the exchange is recorded)
For Bramble:
Equipment(new) $16,750
Accumulated Depreciation $13,400
Cash $4,020
Loss on exchange(balance item) $3,350
To Equipment(old) $37,520
(Being the exchange is recorded)
Only these entries are passed and it attains lacking of commercial substance