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motikmotik
3 years ago
14

The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What was t

he real interest rate during this period?
Business
1 answer:
Kisachek [45]3 years ago
7 0

Answer:

3 percent

Explanation:

A real interest rate is an interest rate which doesn't have impact of inflation and depicts the real cost of funds to the borrower and the real yield to the lender or an investor.

Inflation = (126-120)/120 = 5%

Real Interest Rate = Nominal Interest Rate - Inflation

                               = 8% - 5%= 3%

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Semmy [17]

Employees pay income taxes depending on the rates of the chartering state, therefore a firm may opt to charter in a state with lower income taxes if it has a physical headquarters in one state but files for incorporation in another.

<h3>What is tax?</h3>

A tax is a mandatory financial charge or other types of levy imposed by a governmental organization on a taxpayer (an individual or legal entity) in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers pay the correct amount of tax at the correct time and receive the correct tax allowances and tax reliefs. Most nations have a tax system in place to pay for public, shared social, or agreed-upon national necessities, as well as government services.

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5 0
1 year ago
1. Name several business etiquette guidelines that promote positive workplace conversations, in the office and at work-related s
Maru [420]

Answer:

Please see explanations below

Explanation:

1.

• Ignore or avoid negative remarks when interacting with people either at work or anywhere.

• Give sincere and specific praise to people when they surpass your expectation.

• Always use correct names and titles when addressing people.

• Always choose appropriate topics when sending mails or when communicating.

• Recognize people for good work

• listen to learn in order to be better

2.

• Be smart, cheerful and accurate at all times

• One has to be professional and courteous at all times

• Avoid small or irrelevant talk that can waste too many time hence causes delay in hitting the point of making the call

• Always end the call with a tactful cue without the receiver being offended

• Summarize the points of the call in order to be sure everyone is satisfied with the discussion.

• Plan an agenda to handle calls in-order to know what one has to discuss

3.

• When in a face to face conversation, be sure you pay utmost attention or avoid having divided attention

• One should learn how to lower his or her voice when making calls openly

• Receiving calls when you are already engaged in a face to face conversation is disrespectful hence should not be imbibed.

4 0
3 years ago
Bonnie has decided to begin a retirement savings program where she will contribute to an account that will accumulate tax free t
ahrayia [7]

Answer:

This question is incomplete since the interest rate is not included and so is the requirement.  However, if it asking for the annual contributions Bonnie can make, you can calculate it as shown below and assuming a discount rate of 10%;

Explanation:

Since Bonnie's goal is $300,000, this will be the future value and you can use a financial calculator to solve for recurring deposits (PMT);

Time to retirement; N = 12

Interest rate; I/Y = 10%

Future value; FV = 300,000

One time present cashflow; PV = 0

then compute the recurring deposits; CPT PMT = 14,028.995

Therefore, she will need to contribute $14,029 every year to meet her goal.

8 0
3 years ago
What is the change due if a $50 bill is tendered for a charge of $9.76?
Grace [21]
The answer would be B.
4 0
4 years ago
Read 2 more answers
Lok Co. reports net sales of $4,970,000 for Year 2 and $8,532,000 for Year 3. End-of-year balances for total assets are Year 1,
Mumz [18]

Answer:Assets turnover ratio Year 2 =2.87 times

Assets turnover ratio for Year 3  = 4.58times

Explanation:

The total assets turnover is calculated as  = Net Sales / Average total assets

also,  

Average total assets = (Beginning assets + Ending Assets) / 2

Average total assets for Year 2 = ($1,684,000 +$1,780,000)/ 2 =$1,732,000

Average total assets for Year 3 = ($1,780,000 + $1,949,000 )/2 =$1,864,500

Assets turnover ratio Year 2 =$4,970,000 / $1,732,000 = 2.87 times

Assets turnover ratio for Year 3  = $8,532,000  / $1,864,500 = 4.58times

6 0
3 years ago
Read 2 more answers
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