Answer:
5%
Explanation:
Purchasing power refers to the amount of goods and services a unit of currency can buy.
Purchasing power can be determined by finding the real interest rate.
Real interest rate = Nominal interest rate - inflation rate
10% - 5% = 5%
I hope my answer helps you
Answer:
E. The demand for loanable funds increases.
Answer:
The income statement
Explanation:
The income statement is the document prepared accountants showing the earning of a company at the end of a financial year. The income statement is the profit and loss statement. It tells the business owners and other stakeholders how much profits the business has made. The income statement communicates vital information regarding business performance, such as total revenues, gross profits, and net expenses.
The income statement does not give all the business the information. Accountants will also prepare the balance sheet. A balance sheet shows the assets and liabilities of the business.
A cash flow statement is also prepared. It shows how much cash is available to pay bills, salaries, and debts.
Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.
Hello, yes it's actually common for people to give up their home to avoid further payment only if their lender agrees and allows that to happen. But of course, the remaining balance (the difference of the house value and what's left of the mortgage) must be paid. Walking away from an underwater mortgage can seriously affect that person's financial future and by extent his/her relationship with the community. His/Her credit score will go down with this, it may be difficult for him/her to qualify for another mortgage in the future. Another reason is that - in most states, it is completely legal for lenders to go after the difference (deficiency) because technically they own that and have rights to it.
