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3 years ago

High and unexpected inflation has a greater cost

Business

2 answers:

Keith_Richards [23]3 years ago

6 0

Answer:

A) for those who save than for those who borrow.

Explanation:

For example, I borrow $50,000 at an 8% interest rate while my neighbor has a CD that pays him 4% yearly interest. If the inflation rate unexpectedly increases by 2%, then the real interest that I will pay will be 6% (I will pay less), while the real interest rate that my neighbor will get will be only 2% (he will earn less).

saw5 [17]3 years ago

3 0

D. For savers in low income tax brackets than for savers in high income tax brackets.

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Uncle Fred recently died and left $280,000 to his 45-year-old favorite niece. She immediately spent $80,000 on a town home but d

Marrrta [24]

Answer:

6.06%

Explanation:

The computation of the rate of return is shown below:

Given that

NPER = 20 years

PV = ($280,000 - $80,000) = $200,000

PMT = $0

FV = $75,000 × PVIFA factor at 10% for 21 years

= $75,000 × 8.6487

= $648,652.50

The following formula should be applied

= RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the rate of return is 6.06%

7 0

3 years ago

he Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 485 pounds of cheese per day (358 days per

Kaylis [27]

Answer :

Minimum total annual cost = $3,321.26

Explanation :

The computation of the minimum total annual cost is shown below:

As per the data given in the question,

Annual demand (D) = 67 × 358 days = 23,986

Setup cost (C) = $290

Production rate (R) = 358 days × 485 = 173,630

Holding cost(H) = $0.92

Economic production quantity(Q) = sqrt((2 × D × C) ÷ H × (1-(D ÷ R)))

= sqrt(((2 × 23,986 × $290) ÷ $0.92 × (1 -(23,986 ÷ 173,630)))

= 4,188.7

= 4,189

Minimum total annual cost is

= (Q ÷ 2) × (1 - D ÷ R) × H + (D ÷ Q) × C

=4,189 ÷ 2 × (1 - (23,986 ÷ 173,630) × $0.92+ (23,986 ÷ 4,189) × 290

= $3,321.26

6 0

3 years ago

Interest charges on notes payable may be based on a(n):

Lunna [17]

Interest charges on notes payable may be based on a fixed or variable interest rates.

A fixed interest rate does not change the interest amount charged over the length of the loan. With a fixed interest rate borrows can predict their payments.

A variable interest rate can change during the course of the length of the loan. The market can determine the change in interest rate and it is hard to accurately determine your payment for the length of the loan.

5 0

3 years ago

According to the three-needs theory, the need for ________ is the need to make others behave in a way that they would not have b

Talja [164]

Answer: Power

Explanation: In simple words, power refers to the need in which one aims to gain authority and recognition in which their subordinate and colleagues values them and behaves with them in utmost respect.

Usually, such need brings conflicts in group as if any issue arises the one in the power always wins and the other will always loose no matter who was wrong and who was right.

People in this category usually employs high discipline and remain inn need for a tweeter personal recognition.

5 0

3 years ago

During 2004 Elway Corporation transferred inventory to Howell Corporation and agreed to repurchase the merchandise early in 2005

Svet_ta [14]

Answer:

d. Product financing arrangement.

Explanation:

A business transaction in which an organization sells and agrees to repurchase inventory with the repurchase price equal to the initial or original sales price plus the carrying and financing costs is known as the Product financing arrangement.

A product financing arrangement is more likely to exist when the seller commits to having a third party client purchase the item and then agrees to repurchase the item from the third party client.

It's noteworthy to know, that the seller controls how the item sold under either of the above mentioned situations is analysed and disposed of.

6 0

3 years ago