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3 years ago

15 points :)!! Does reducing interest rates make it so banks make more loans, which overall increases the money supply????

1 answer:

7 0

Reducing interest rates means that interest is less, which in turn means more money for people to spend so yes I would say it increases the money supply.

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The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.

NISA [10]

Answer:

Total PV= $2,736.39

Explanation:

Giving the following information:

Year Cash Flow

1 $ 870

2 950

3 0

4 1,540

First, we need to calculate the real annual discount rate:

Quarterly Discount rate= 0.08/4= 0.02

Real annual interest rate= [(1+i)^n] - 1

Real annual interest rate= [(1.02^4) - 1]

Real annual interest rate= 0.08243

Now, we can calculate the present value of the cash flows:

PV= Cf/(1+i)^n

Year 1= 870/1.08243= 803.75

Year 2= 950/1.08243^2= 810.82

Year 4= 1,540/1.08243^4= 1,121.82

Total PV= $2,736.39

7 0

3 years ago

At an appliance store, the price of a refrigerator is marked up 25% to $406. 25. What was the price of the refrigerator before t

Triss [41]

The price of the refrigerator before markup will be $325. This can be calculated by reversing the markup in the price of the refrigerator.

<h3>What is Markup?</h3>

Markup basically refers to the difference between the selling price of a good and its cost. The markup is generally expressed as a percentage and is added to the cost of the good to ensure cost cover and earn profit.

For the given question, the before markup price can be calculated as:

Given:

$\rm \:\:After\: markup\:price = \$406.25\\\\Markup\:percentage\:\: = 25\%$

Makeup is the addition to the original price of a good. The after markup price can be taken as 100% + 25% = 125% of original price.

Then original price can be calculated as:

$\rm x = \$406.25 \times \dfrac{100}{125}\\\\x = \$325$

Therefore the before markup price is $325.

Learn more about markup here:

brainly.com/question/5189512

5 0

3 years ago

Please help me I need this point

schepotkina [342]

Answer:

Explanation:

7 0

3 years ago

Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected

7nadin3 [17]

Answer:

expected income 105,000

Explanation:

Our goal would be to multiply the average contribution margin of the company by the total units produced.

$average \: contribution \times units\: sold = contribution \: margin\\30 \times (40,000 + 60,000) = 30\times 100,000 = 300,000$

Important: the given is the weighted average, so the units mix (40% STD 60% SUPREME) is taken into consideration already, no need to additional calculation. If we were told the Contribution Margin per type of unit we will be needing to calculate the average CM.

Now, second step will be subtract the fixed cost from the contribution to get the pretax income

$Net \:Income = contribution \: margin - fixed \: cost\\300,000 - 195,000 = 105,000$

3 0

3 years ago

The _____ protects the rights of individuals forty years old and older.

lys-0071 [83]

Answer:

The Age discrimination Act of 1967 protects the rights of individuals forty years old and above.

Explanation:

The age discrimination Act includes a broad ban against age discrimination against workers over the age of forty and also specially prohibits; discrimination in hiring, promotion, wages and termination of employment and lay offs

4 0

3 years ago