The government is paying 10% in interest.
What interest on Treasury bills?
The interest on Treasury bills compares the interest earned by the investor to the face value of the T-bill, in other words, it is determined as the interest(i.e. face value-purchase price) divided by the face value.
From an investor's perspective, I mean the person buy purchasing the T-bill, his rate of return is the interest divided by the amount invested, which is the purchase price.
Interest=face value-purchase price
face value=$1,000
purchase price=$900
interest=$1000-$900
interest=$100
government's interest rate=interest/face value
government's interest rate=$100/$1000
government's interest rate=10%
In other words, the government by a way of issuing the bills is paying interest of 10% to the lenders
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Inflation is 110
<u>Explanation:</u>
The consumer price index is the ratio of the basket prices of the current year to the basket price of the base year multipliers by 100, this helps us to determine inflation
now, cpi in second year =
= 110
Answer:
Break-even point in units= 5,500
Explanation:
Giving the following information:
Selling price per unit $80
Contribution margin per unit $40
Total fixed costs $120,000
Tax rate 40%
Desired profit= $60,000
<u>First, we need to calculate the earnings before tax:</u>
EBT= desired profit / (1 - t)
EBT= 60,000 / (1 - 0.4)
EBT= $100,000
<u>Now, the break-even point in units using the following formula:</u>
Break-even point in units= (fixed costs + EBT)/ contribution margin per unit
Break-even point in units= (120,000 + 100,000) / (80 - 40)
Break-even point in units= 5,500
The answer would be
A. union-friendly
because during the new deal labor laws that favored unions were passed
The answer for this question is True