When you take out an insurance policy your monthly premium is the amount you pay each month to keep your insurance. In this case, the $200 a month premium allows you to file a claim if something were to happen because you are paying for the insurance services. When you set up your premiums they will base your monthly service rates off of your deductible amount if you need to file a claim. The out-of-pocket for a car accident with a deductible of $700 is $700. Once the deductible is paid, the insurance will pay out for the damage.
Answer:
The nominal federal funds rate be changed to 3%
Explanation:
Hi, in order to find the new nominal federal fund rate, we have to use the following equation.
Where:
I = Nominal fed funds rate (what we are looking for)
R*=Real federal funds rate (changed from 1% to 3%, we use 3%)
PI= Rate of inflation (current inflation, in our case, 1%)
PI*=Target inflation (expected inflation, 3%)
Everything should look like this.
I = 3% + 1% + 0.5(1% - 3%)
I = 4% - 0.5(-2%)
I = 4% - 1%
I = 3%
So the nominal federal funds rate should be 3% under this problem´s conditions.
Best of luck.
Answer: 0.22
Explanation: Return on total assets is calculated by dividing net income or operating income from average total assets. It is a profitability ratio which is used by analysts to evaluate the ability of the firm to generate revenue from the given level of assets it have.
where,
= $425,000
Now,putting the values into equation :-
= 0.22
<span>4% X 18 (years) = 72.
Therefore, the investment will double in 18 years.</span>
Answer:
Hence, the minimum transfer price = $2
Explanation:
Transfer price is the price at which goods are exchange between branches or divisions of the same group
Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows
Minimum transfer price = Variable cost
It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division is currently having excess capacity- it can meets all demands both external and internal.
<em>Therefore, any offering price equal to or above the variable manufacturing cost of $2 would be acceptable and optimize the group profit</em>.
Hence, the minimum transfer price = $2
