Answer:
A) Principal will be repaid earlier than anticipated and will need to be reinvested at lower rates, generating a lower level of income
Explanation:
Because of the lower interest rates, the investor will get his principal back faster. This can now be invested back at the new lower rate.
The loan duration will also reduce in this instance.
Getting quick funds to pay off the old higher interest mortgage will be a smart move. There will now be an investment in the lower interest mortgage.
Answer:
1 bushel of corn
Explanation: Opportunity cost may be explained as the potential loss incurred by opting to go for an alternative option.
If it takes 2 acres of land to grow 200 bushels of corn
4 acres of land to grow 200 bushels of beans, then opportunity cost of one bushel of beans is:
Opportunity cost = (Return on best option not chosen - return on the option chosen)
Opportunity cost of one bushel of beans :
200 bushel of corn = 2 acres
I bushel of corn = (2/200) = 0.01 acres
200 bushel of beans = 4 acres
1 bushel of beans = (4/200) = 0.02 acres
0.02 acres used to grow 1 bushel of beans would have been used to produce 2 bushel of corn
Therefore opportunity cost = (2 - 1) = 1
Answer:
d. brand name
Explanation:
If a company has the money, it can acquire much software that is necessary for the company. Therefore, option B is incorrect. The company can lease a new building through the capital, and a new building is a non-current asset. So, option C is also wrong. A new CEO is not an asset because the company has to pay a salary for the CEO that is an expense. So, option A is not correct.
The brand name is an asset to the company. Using capital, Threadbare Industries cannot acquire the brand name. A brand name cannot be acquired through the capital, and it can be acquired through customer satisfaction. Therefore, option D is correct.
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Answer:
1.79%
Explanation:
Calculation to determine the difference in the annual inflation rates for the United States and Poland over this period
Current exchange rate for Polish Zioty = Z 3.91/ US dollars
Expected exchange rate in 3 years for Polish Zioty = Z 3.98/ US Dollars
Now let determine the difference in the annual inflation rates
Annual inflation rates= ( 3.98– 3.91)/ 3.91 x 100
Annual inflation rates= 0.06/3.91x 100
Annual inflation rates=1.79 %
Therefore the difference in the annual inflation rates for the United States and Poland over this period is 1.79%