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4 years ago

The___ rate is the rate of change in prices calculated on a monthly or yearly basis

Business

1 answer:

otez555 [7]4 years ago

5 0

Answer: A.) INFLATION

Explanation: prices of goods and services are usually prone to change and fluctuation from time to time. The change usually associated with inflation is an increase in price of commodities within a certain period of time. In other to adequately measure inflation, the change in prices of certain economic commodities are compared over an equal time interval either monthly, quarterly or yearly basis as the case may be.

It is calculated as the ratio of the difference between the price of goods between the base and current period to the price at the base period expressed as a percentage. Fall or decline in prices of goods and services is usually called deflation

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Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1500 and a credit entry of $550 in the

Dmitriy789 [7]

It will be answer choice b

5 0

3 years ago

A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of com

coldgirl [10]

Answer:

Total cost for Corporate = $5,729,015

Total cost for Government = $6,720,985

Explanation:

The computation of Fixed and Variable of corporate and government is given below:-

Fixed cost allocated for Corporate = Fixed computer costs × Number of consultant of Corporate ÷ Total number of consultant

= $9,950,000 × 125 ÷ (125 + 175)

= $9,950,000 × 125 ÷ 300

= $4,145,833

Fixed cost allocated for Government = Fixed computer costs × Number of consultant of Government ÷ Total number of consultant

= $9,950,000 × 175 ÷ (125 + 175)

= $9,950,000 × 175 ÷ 300

= $5,804,167

Variable cost = Total cost - Fixed cost

= $12,450,000 - $9,950,000

= $2,500,000

Variable cost allocated for Corporate = Variable cost × Gigabytes of Storage for Corporate ÷ Total Number of Gigabytes of Storage

= $2,500,000 × 104,300 ÷ (104,300 + 60,400)

= $2,500,000 × 104,300 ÷ 164,700

= $1,583,182

Variable cost allocated for Government = Variable cost × Gigabytes of Storage for Government ÷ Total Number of Gigabytes of Storage

= $2,500,000 × 60,400 ÷ (104,300 + 60,400)

= $2,500,000 × 60,400 ÷ 164,700

= $916,818

Total cost for Corporate = $4,145,833 + $1,583,182

= $5,729,015

Total cost for Government = $5,804,167 + $916,818

= $6,720,985

8 0

3 years ago

An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold

irinina [24]

Answer: The investor should be willing to pay <u>$927.68 </u>for the bond today.

We in need to compute the price at which the investor can sell the bond in year 10 (Y10).

The price of the bond in year 10 will be the present value of the coupons over the remaining life of the bond and the maturity value of the bond after 20 years.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected YTM in year 10 0.08

Expected semi annual YTM in year 10 $\frac{0.08}{2} =0.04$

Face (Maturity) Value of the bond (MV) $1,000.00

The bond price in year 10 will be

$\mathbf{Bond Price_{Y10}=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{MV}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price_{Y10}=50*\left ( \frac{1-(1+0.04)^{-20}}{0.04}\right )+\frac{1000}{(1+0.04)^{20}}$

$Bond Price_{Y10}=50*\left (13.59\right )+\frac{1000}{2.19}$

$\mathbf{Bond Price_{Y10}= 679.52+ 456.39 = 1,135.90}$

<u>Hence the investor can expect to sell the bond in year 10 at $1,135.90.</u>

Now, we'll calculate the price the investor is willing to pay for the bond. The investor can expected to pay the Present Value of the coupons she'll receive over 10 years and the selling price of the bond 10 years from now. We discount the cash flows at the rate of return the investor expects.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected rate of return 0.12

Expected semi annual rate of return $\frac{0.12}{2} =0.06$

Selling Price of the bond (SP) $1,135.90

$\mathbf{Bond Price=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{SP}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price=50*\left ( \frac{1-(1+0.06)^{-20}}{0.06}\right )+\frac{1000}{(1+0.06)^{20}}$

$Bond Price=50*\left (11.47\right )+\frac{1000}{3.21}$

$\mathbf{Bond Price= 573.50+ 354.18 = 927.80}$

4 0

3 years ago

Under which circumstance would someone need disability insurance?

Mandarinka [93]

You would need Disability insurance to protect one's income in the case that he or she becomes disabled.

So circumstances could include car crashes natraul events

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3 years ago

Read 2 more answers

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month

Cloud [144]

Answer:c $1666F

Explanation:

See attached file

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3 years ago