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coldgirl [10]
4 years ago
12

If inflation is anticipated to be 6 percent during the next year, while the real rate of interest for a one-year loan is 5 perce

nt, then what should the nominal rate of interest be for a risk-free one-year loan
Business
1 answer:
Talja [164]4 years ago
3 0

Answer:

11%

Explanation:

Nominal interest rate = real interest rate + inflation rate

6% + 5% = 11%

Anticipated Inflation rate is the rate at which it is expected that price levels would rise.

Real interest rate is the rate of interest that has been adjusted for the effects of inflation.

I hope my answer helps you

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Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Cait
natka813 [3]

Answer:

Pauls' share in partnership=(131000+91000+111000+171000)*0.15%= $75600

Balance in Caitlin’s capital account immediately after Paul’s admission = 131000-(75600-71000)*30%= $129160

6 0
3 years ago
Suppose that Ariana consumes two goods, coffee and textbooks. Both are normal goods. Suppose the price of textbooks decreases, w
marta [7]

Answer:

The correct answer here would be option D) more of textbooks would be consumed and less of coffee would be consumed.

Explanation:

In economics, substitution effect refers to a situation where there is change in demand of one good in response to the change in price of other goods. Same situation is taking place here as now the price of textbooks have decreased , Ariana will now look to consume more of textbooks and less of coffee.

4 0
4 years ago
Read 2 more answers
As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the followin
Airida [17]

Answer:

Option (C) is correct.

Explanation:

EBIT = Sales revenues - Depreciation - Other operating costs

        = $39,500 - $10,000 - $17,000

        = $12,500

EBT/PBT = EBIT - Interest expense

               = $12,500 - $4,000

               = $8,500

PAT = EBT - Tax rate

      = $8,500 - 35% of $8,500

      = $8,500 - $2,975

      = $5,525

CFAT = PAT + Depreciation

         = $5,525 + $10,000

         = $15,525

Therefore, the Year 1 cash flow is $15,525.

8 0
4 years ago
What is meant by reconciliation, and how can it be useful as an input to staff ing planning? wuizlet
umka21 [38]

entails accepting predicted gaps and their most likely causes. They can be helpful in identifying areas to concentrate on and in responding to projected results for the organisational unit.

What is Staffing Planning?
A staffing plan is a strategic planning process used by a business to evaluate and identify its personnel needs (usually under the direction of the HR team). In other words, a solid staffing plan aids in your understanding of the quantity and variety of personnel your business requires to achieve its objectives.

To learn more about Staffing Planning
brainly.com/question/3504046
#SPJ4

7 0
2 years ago
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to
Juliette [100K]

Answer:

Results are below.

Explanation:

<u>To calculate the predetermined overhead rate, we need to use the following formula on each department:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Department D:</u>

Predetermined manufacturing overhead rate= 1,197,000 / 1,496,250

Predetermined manufacturing overhead rate= $0.8 per direct labor dollar

<u>Department E:</u>

Predetermined manufacturing overhead rate= 1,500,000 / 125,000

Predetermined manufacturing overhead rate= $12 per direct labor hour

<u>Department K:</u>

Predetermined manufacturing overhead rate= 720,000 / 120,000

Predetermined manufacturing overhead rate= $6 per machine hour

6 0
3 years ago
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