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vekshin1
3 years ago
12

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money

, both she and Harry expect an inflation rate of 6%. 1st attempt Part 1 (0.3 point)See Hint The expected real interest rate on the loan is %. Part 2 (0.3 point)See Hint Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%. The actual real interest rate on
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money, both she and Harry expect an inflation rate of 6%. Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%.

Real rate= nominal rate - inflation rate

At the beginning of the loan, the expected real rate is:

Real rate= 9 - 6= 3%

The actual rate is:

Real rate= 9 - 7= 2%

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When trade barriers began to fall, what was the motivation for much of the foreign direct investment by non-U.S. firms
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Answer:

The motivations were all the advantages that the U.S. market offers.

These advantages are many, because the U.S. is a developed country, with a very large population, and a robust legal system that protects private property, including the property of non U.S. firms that invest in the country.

For these reasons, once trade barriers began to fall, many non U.S. firms took advantage of the new opportunities, and started to invest in the U.S. market.

6 0
3 years ago
On September 1, Year 1, the Central Illinois University ticket office sold $1,800,000 worth of season basketball tickets. Ten ho
Alexxandr [17]

Answer:

The adjusted balance in Deferred Revenue at the end of year 1 is $1,080,000.

Explanation:

Deferred revenue is also known as unearned revenue which means that income is received but not earned. In accrual basis accounting, we record revenues only after we deliver the goods or perform the services.

In this case, the $1,800,000 is received for 10 home games which means that per game we received 1,800,000/10 = 180,000.

Since only 4 games were played during the year, the revenue earned at the end of year 1 is: 180,000*4= 720,000

The remaining 6 games will be played in year 2 but we have already received the payment of games, so it will be considered as a Deferred Revenue. The amount of Deferred Revenue at the end of year 1 is:

⇒ 180,000*6 = 1,080,000

4 0
3 years ago
ReNaPro Inc., a multinational marketing agency, offers a curriculum in health education for its employees. It provides health pr
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Answer:

engaged in health promotion at the highest level of organizational commitment

Explanation:

As it is mentioned in the question that ReNaPro Inc i.e is a multinational marketing agency that provided its employees a health educational program. In addition, it also regularly offers health promotions and offered incentives.

So here ReNaPro engaged in the promotion of health for the highest level of organisational commitment

6 0
3 years ago
4. Bear Traders is considering a project that will produce sales of $38,000 and increase cash expenses by $15,500. If the projec
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Answer:

The operating cash flow would be $ 13500

Explanation:

Given,

Sales =  $ 38,000,

Expenses = $ 15,500,

Additional depreciation expenses =  $2,600,

So, earning before tax = Sales - total expenses = 38000 - (15500 + 2600)

= 38000 - 18100

= $ 19900,

Now, implemented taxes = $3,000,

Thus, earning after tax = 19900 - 3000 = $ 16900,

Depreciation = $ 3,400

Thus, the operating cash flow = 16900 - 3400 = $ 13,500

6 0
4 years ago
What is the purpose of active listening?
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Explanation:

Active listening serves the purpose of earning the trust of others and helping you to understand their situations. Active listening comprises both a desire to comprehend as well as to offer support and empathy to the speaker.

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3 years ago
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