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lozanna [386]
2 years ago
11

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the inflat

ion rate was 7%, what was the real interest rate you paid?
Business
1 answer:
brilliants [131]2 years ago
7 0

Answer:

3%

Explanation:

Data provided as per the question

Nominal interest rate = 100%

Inflation rate = 7%

The computation of the real interest rate is shown below:-

Real interest rate = Nominal interest rate - Inflation rate

= 10% - 7%

= 3%

Therefore, for computing the real interest rate we simply deduct the inflation rate from the nominal interest rate.

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Gunk Co. reported an asset retirement obligation on its 2019 financial statements. The present value of the liability for the as
iVinArrow [24]

Answer:

$31.44

Explanation:

The accretion expense each year will be calculated as = Present value of the Asset retirement obligation at the end of the previous year * Discount Rate

Hence, the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation

= $393 * 8%

= $31.44

4 0
2 years ago
How do corporations raise money and resources to expand? Select THREE answers.
Firlakuza [10]

Answer:

A. <u><em>They request a bank loan. </em></u>

D. <u><em>They agree to sell stocks. </em></u>

E. <u><em>They issue bonds. </em></u>

<u><em /></u>

Explanation:

your welcome

3 0
3 years ago
Read 2 more answers
Krista's dry-cleaning business incurs $900 per month in fixed costs. Last month her total output was 3,000 pounds of clothes. Th
nikdorinn [45]

Answer:

increased; 3.33 cents

Explanation:

Fixed cost is cost that doesn't vary with unit produced. It remains constant

Average fixed cost = Fixed cost/ output

Average fixed cost last month = $900 / 3000 = $0.3

Average fixed cost this month = $900 / $2700 =$ 0.333

Average fixed cost this month ($0.333) is greater than Average fixed cost last month by $ 0.333 - $ 0.3 = $ 0.033 = 3.33 cents

I hope my answer helps you

3 0
3 years ago
what type of leadership focuses on alternative methods of conducting organizational change processes.
KATRIN_1 [288]

Answer: Organizational change leader

Explanation:

The organizational change leader is the big hand for controlling the changes in the organization and management.  This involves the change centric leadership. The leader should not look upon the upward organizational hierarchy to seek help instead must take actions and must implement them on others. Empowering the stakeholders. Managing the team discussions and working ethics and credibility.

3 0
3 years ago
Diego company manufactures one product that is sold for $76 per unit into geographic regions the east and west regions. The foll
Shtirlitz [24]

Answer:

\left[\begin{array}{cccc}&West&East&Total\\$Sales&2,432,000&760,000&3,192,000\\$Traceable Fixed&-210,000&-160,000&-370,000\\$Business Fixed Cost&&&-105,000\\$Income&2,222,000&600,000&2,717,000\\\end{array}\right]

Explanation:

The units sold on each region should be multiply by the $76 unit selling price.

Then, we subtract the fixed selling expense tracable to each division

and then, we subtract to the whole company the common fixed cost.

7 0
3 years ago
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