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Sidana [21]
3 years ago
7

Which of the following statements is(are) true:

Business
1 answer:
Rudiy273 years ago
5 0

Answer:

Neither I nor II are correct

Explanation:

I. The nominal interest rate is also referred to as the APR or the stated rate.

This statement is not true because nominal interest rate is different from the annual percentage rate (APR).

A nominal interest rate is basically the interest rate is charged by banks or other financial institutions on a loan, and other expenses on the loan are not added to the interest when interest rate is being determined.

On the other hand, APR is nominal interest rate plus other expenses incurred in other to get the loan.

Therefore, nominal interest rate is usually lower than the APR. This makes them to be different.

II. You should use the nominal interest rate to compare two alternative investments/loans with different compounding periods.

This statement is not correct.

The interest rate is used to to compare two alternative investments/loans with different compounding periods is the effective interest rate.

The effective interest rate is the actual amount of interest rate that a lender or an investor earned on his loan, investment because of compounding that is done during a specific period of time. The effective annual interest rate is the interest rate that is employed to compare different investment products because, unlike other interest rate, compounded interest are estimated differently by it.

Therefore, Neither I nor II are correct.

I wish you the best.

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The substitution bias in the consumer price index refers to the idea that consumers​ ______ the quantity of products they buy in
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Answer:

change; over-estimates

Explanation:

Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.

7 0
2 years ago
Highway 151 Inc. can further process 2,500 pounds of Product C to produce Product M. Product C is currently selling for $36 per
Grace [21]

Answer:

$27,500

Explanation:

Revenue from the sale of  Product C = $36 × 2500

                                                             = $90,000

Cost to produce Product C = $14 × 2500

                                             = $35,000

Revenue from the sale of Product M = $47 × 2500

                                                              = $117,500

Differential Total Net Revenue of producing Product M

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= $27,500

4 0
2 years ago
Read 2 more answers
The next 5 questions use the same below information. Company C had the following investment. Help them determine the financial s
valentinak56 [21]

Answer:

$143,600

Explanation:

Calculation for What is net income for 20X1 assuming the investment is short-term

Using this formula

Net income for 20X1 = Sales – Expenses + Unrealized gain on short-term investments

Let plug in the formula

Net income for 20X1 = $1,670,200 - $1,536,600 + $10,000

Net income for 20X1= $143,600

Therefore the net income for 20X1 assuming the investment is short-term will be $143,600

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what is the term for a group of project activities that are assigned to a single organizational unit?
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The answer is $230,000. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to $230,000
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