1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
4 years ago
13

13) In which of the following situations would you prefer to be the lender? 13) A) The interest rate is 9 percent and the expect

ed inflation rate is 7 percent. B) The interest rate is 13 percent and the expected inflation rate is 15 percent. C) The interest rate is 4 percent and the expected inflation rate is 1 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent
Business
1 answer:
Agata [3.3K]4 years ago
5 0

Answer:

C) The interest rate is 4 percent and the expected inflation rate is 1 percent.

Explanation:

Generally, a person would prefer to be a lender when the interest rate is higher than the expected inflation. The idea is to compensate the lender that fall in the value of money that will occur as a result of the fall in the value of money caused by the expected inflation. From the question, only situations (A) and (C) meet these criteria. But we have to choose one based on the criteria in the next paragraph.

Specifically, if a person is confronted with more than one situation to a be lender, he will prefer to be a lender under a situation where the weight of contribution of interest rate to the addition of interest and expected inflation is the highest. Given only (A) and (C) meet the first criteria, we can compute the weight of contribution of interest rate as follows:

For situation (A) – Weight of interest rate contribution = [9% × (9% + 7%)] = 0.56, or 56%

For situation (C) – Weight of interest rate contribution = [4% × (4% + 1%)] = 0.80, or 80%

Situation (C)’s weight of interest rate contribution of 80% is higher than the situation (A)’s weight of interest rate contribution of 56%, the person will prefer to be a lender under situation (C) where the interest rate is 4 percent and the expected inflation rate is 1 percent.

You might be interested in
Is it ethical to be a billionaire?
yan [13]
Yes it is 100% you can do anything
7 0
3 years ago
1. Explain why businesses pay overtime rates rather than employ more workers on the lower standard wage rate?
Alex Ar [27]

Answer:

Executive Summary

The labor market continues to recover, but a stubbornly high rate of underemployment persists as more than five million Americans are working part-time for economic reasons (U.S. BLS 2015a; 2015b). Not only are many of this type of underemployed worker, by definition, scheduled for fewer hours, days, or weeks than they prefer to be working, the daily timing of their work schedules can often be irregular or unpredictable. This both constrains consumer spending and complicates the daily work lives of such workers, particularly those navigating through nonwork responsibilities such as caregiving. This variability of work hours contributes to income instability and thus, adversely affects not only household consumption but general macroeconomic performance.

The plight of employees with unstable work schedules is demonstrated here with new findings, using General Social Survey (GSS) data. These findings (as well as key findings from other research) are highlighted below.

Irregular scheduling

About 10 percent of the workforce is assigned to irregular and on-call work shift times and this figure is likely low.1 Add to this the roughly 7 percent of the employed who work split or rotating shifts and there are about 17 percent of the workforce with unstable work shift schedules.

Six percent of hourly workers, 8 percent of salaried workers, and 30 percent of those paid on some other basis work irregular or on-call shifts. Adding in split or rotating shifts, the shares working unstable work schedules are 16 percent (hourly), 12 percent (salaried) and 36 percent (other).

By income level, the lowest income workers face the most irregular work schedules.

Workers paid under $22,500 per year are more likely to work on irregular schedules than workers in the income bracket above that (workers in the latter bracket who are salaried would be just above the current salary minimum threshold for assured FLSA overtime coverage).

Irregular shift work is associated with working longer weekly hours.

By occupation type, about 15 percent of sales and related occupations have irregular or on-call schedules.

By industry, irregular scheduling is most prevalent in agriculture, personal services, business/repair services, entertainment/recreation, finance/insurance/real estate, retail trade, and transportation communications.

Estimates of the proportion of the workforce with “variable hours,” in terms of not being able to specify a “usual” workweek (according to Current Population Survey, not GSS data), are remarkably consistent—almost 10 percent of workers overall. Being part-time more than doubled the likelihood of having hours that vary weekly. The share with variable workweeks also is higher in certain occupations and industries, such as sales, and lower in others, such as professional, managerial, and administrative support. Also, the prevalence is reduced for union members, married workers, government employees, whites, men, and workers with a higher level of education.

Nearly half of workers (45 percent) surveyed by the International Social Survey Program said that their “employer decides” their work schedule. Only 15 percent perceived that they were “free to decide” their work schedule. The remaining 40 percent felt they could “decide within limits.” This conforms to another study of “early career” workers; just under half of hourly early career workers surveyed in the National Longitudinal Study of Youth said they have their daily start and end times of work decided entirely by their employer, without their input.

Irregular scheduling and outcomes

Employees who work irregular shift times, in contrast with those with more standard, regular shift times, experience greater work-family conflict, and sometimes experience greater work stress.

Less than 11 percent of workers on “regular” work schedules report “often” experiencing work-family conflict in contrast with as many as 26 percent of irregular/on

8 0
3 years ago
Read 2 more answers
Accounts receivable, net of the allowance for doubtful accounts is called:.
charle [14.2K]

Accounts receivable, net of the allowance for doubtful accounts is called  net realizable value.

<h3>What is net realizable value?</h3>

Net realizable value is the method of knowing the value of asset that is held as inventory. The purpose of this method is to avoid overstating or understating the value of an goods in inventory.

The net realizable value is the result of deducting the costs incurred in selling the goods from its selling price.

Hence, accounts receivable, net of the allowance for doubtful accounts is called  net realizable value.

Learn more about net realizable value here : brainly.com/question/794345

6 0
3 years ago
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,288,076
Xelga [282]

Answer:

Using the FIFO cost method:

beginning WIP 34,600 units

materials $79,000 (100% complete)

conversion $48,200 (30% complete, 70% remaining = 24,220 EU)

units started 662,700

materials added $1,594,520

conversion costs added $566,356

ending WIP 24,100

100% complete for materials

40% complete for conversion = 9,640 EU

units completed and transferred out = 34,600 + 662,700 - 24,100 = 673,200

units started and completed = 662,700 - 34,600 - 24,100 = 604,000

total equivalent units for the month:

materials 662,700

conversion = 24,220 + 604,000 + 9,640 = 637,860

total cost per EU:

materials = $1,594,520 / 662,700 = $2.4061

conversion = $566,356 / 637,860 = $0.8879

total = $3.294

cost of ending WIP:

materials = 24,100 x $2.4061 = $57,987

conversion = 9,640 x $0.8879 = $8,559.36 ≈ $8,559

total = $66,546

cost of units transferred out = $79,000 + $48,200 + $1,594,520 + $566,356 - $66,546 = $2,221,530

total units transferred out = 673,200

production cost per unit = $2,221,530 / 673,200 = $3.30

3 0
3 years ago
On January 1, 2016, Pearson Corp has beginning inventory of 240 surfboards. Pearson estimates it will sell 400 units during the
Zanzabum

Answer:

Pearson Corp

Budgeted Sales Revenue for the third quarter of 2016:

The budgeted sales revenue = $88,200 (441 x $200)

Explanation:

If First Quarter Sales = 400 units

Second Quarter Sales = 420 units (400 x 1.05)

Therefore, Third Quarter Sales = 441 units (420 x 1.05)

Another way to work it out is to compound the rate for two years:

(1.05)ⁿ = (1.05)∧2 = 1.1025

Sales in first quarter = 400 x $200 = $80,000

Sales in third quarter = $80,000 x 1.1025 = $88,200

The compounding of the rate of increase yield a compound factor that can be applied to the value of the sales in the first quarter to arrive at a sales value for the third quarter without working out the sales value for the second quarter also.

8 0
4 years ago
Other questions:
  • Joel and Rachel are both retired. Married for 50 years, they’ve amassed an estate worth $2.4 million. The couple has no trusts o
    10·1 answer
  • On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv
    12·1 answer
  • Margie is 15 and claimed as a dependent by her parents. she has $800 in dividends income and $1,400 in wages from a part-time jo
    10·1 answer
  • ______________ of leaders include​ gathering, analyzing, and communicating various materials for the company both internally and
    6·1 answer
  • A firm, with an 18% cost of capital, is considering the
    14·1 answer
  • Which of the following are considered
    9·1 answer
  • 56. What implements and materials are needed for a wet set with rollers?
    13·1 answer
  • Identify which characteristic describes common stock (CS) or preferred stock (PS) financing. May have cumulative and participati
    11·1 answer
  • Rita notices her credit score has gone down. She most likely ________.
    15·2 answers
  • You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays n
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!