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3 years ago

Higher nominal interest rates the amount of money demanded and higher real income the amount of money demanded.

Business

1 answer:

Ulleksa [173]3 years ago

3 0

Answer:

decreases

increases

Explanation:

Nominal interest rate is real interest rate plus inflation rate. If nominal interest rate rises, people would prefer to save their money and so the demand for money would fall.

Real income is income adjusted for price level changes. The higher the real income,the higher the purchasing power, the higher the demand for money.

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Ann [662]

An enterprise system is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business. And large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations.

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3 years ago

You are due to receive a lump-sum payment of $1,350 in four years and an additional lump-sum payment of $1,450 in five years. As

FrozenT [24]

Answer:

2560.50

Explanation:

For bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at 2%. Thus, the value of the bond can be determined as follows:

Years 1 2 3 4 5 Total

Principal 1,350 1,450 2,800

Interest 0 0 0 0 0 0

Total inflow 0 0 1,350 1,450 2,800

[email protected]% 0 0 0 1,247 1,313 2,561

8 0

3 years ago

You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add anothe

choli [55]

Answer:

The value of the investment would be $16,035.87 in 12 quarters from now

Explanation:

The value of $2,500 after four quarters can be determined with the below formula:

FV=PV*(1+r/t)^N*t

FV is the future value of the investment, the unknown

PV, the present value of the investment is the amount invested.

r is the rate of return of 4%

t is the number of times interest is paid annually,4 times in this case

After the first four quarters, the worth of the investment is shown thus:

FV=$2500*(1+4%/4)^1*4

FV=$2500*(1+1%)^4

FV=$2,601.51

After that $5000 was added to $2,601.51 making $7,601.51 which was reinvested to yield the below:

FV=$7,601.51*(1+ in 4%/4)^1*4

FV=$7,601.51*(1+1%)^4

FV=$7910.16

Then $7,500 was added to $7,910.16 which turns $15,410.16

FV=$15,410.16*(1+4%/4)^1*4

FV=$15,410.16*(1+1%)^4

FV=$16,035.87

4 0

3 years ago

Elsanora Corporation reports the year-end information from 2018 as follows: Sales (100,000 units) $500,000 Less: Cost of goods s

Charra [1.4K]

Answer:

Results are below.

Explanation:

Giving the following formula:

Unitary selling price= 500,000/100,000= $5

Operating expenses= $1

Depreciation= $20,000

New selling price= 5*1.1= $5.5

Sales in units= 100,000*0.95= 95,000

COGS rate= 0.62

<u>To calculate the net income, we need to use the following structure:</u>

Sales= 5.5*95,000= 522,500

COGS= 522,500*0.62= (323,950)

Gross profit= 198,550

Operating expenses= (95,000 + 20,000)= (115,000)

Net income= 83,550

6 0

3 years ago

On December 31, 2017, Ivanhoe Company had $1,313,000 of short-term debt in the form of notes payable due February 2, 2018. On Ja

gizmo_the_mogwai [7]

Answer:

They should be reported in 2 different parts, first under current liabilities as:

Notes payable $269,000

Then under long term liabilities:

Notes payable expected to be refinanced $1,044,000

Explanation:

the total short term notes payable on December 31 = $1,313,000

$1,044,000 were paid off by issuing common stocks, so that portion of the debt must be reported as notes payable expected to be refinanced (or refinanced debt)
the remaining $269,000 which were paid using cash reserves must be reported as current notes payable

5 0

3 years ago

Higher nominal interest rates ______ the amount of money demanded and higher real income ______ the amount of money demanded.

Higher nominal interest rates the amount of money demanded and higher real income the amount of money demanded.