The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%
That statement is false.
They are different. Purchase discounts are given by the sellers to the buyers in order to reduce the amount that the buyers have to pay if they complete the payment within a specific period of time. Trade discount on the other hand, is given by manufacturers to the sellers or re-sellers.
Answer:
Total loss= $4,745
Explanation:
Giving the following information:
Coronado Inc. has an investment in trading securities of $150000. This investment experienced an unrealized loss of $7300 during the current year. Assuming a 35% tax rate.
Loss= 7,300
Tax savings= (7,300*0.35)= (2,555)
Total loss= $4,745
Answer:
Check Explanation.
Explanation:
Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.
Thus Y/L = b; b = k^1/2 L^1/2/ L.
b = k^1/2.
From the question we are given that L = 6% = 0.06.
Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.
For country A,
(a). the steady state;
∆k = 0 = y - dk.
0 = 0.15 × k^1/2 - 0.06k.
K^1/2 = 2.5, k* = 6.25
(b). y = K^1/2 = (6.25)^1/2.
y* = 2.5
(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.
C* = 2.125.
Then, for COUNTRY B.
(a). ∆k = 0 = y - dk.
0 = 0.25 × k^1/2 - 0.06k.
K^1/2 = 4.167, k* = 17.36
(b). y = K^1/2 = (17.36)^1/2.
y* = 4.167.
(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.
C* = 3.127.
C* = 2.125.
That you will not be in loss you will be in profit bt not too much
