Answer:
Inflation in 2012:
= 10%
Inflation in 2013:
= 9.09%
Inflation in 2014:
= 5%
Real rate of interest = Nominal - inflation
Given that,
Nominal rate = 8%
Therefore,
Real interest rate is as follows:
2012:
= 8% - 10%
= -2%
2013:
= 8% - 9.09%
= -1.09%
2014:
= 8% - 5%
= 3%
$6000 at 8% grows to:
= 1000 × 1.08
= $6,480 in one year
which is invested again to grow to $6,998.4 in two years
which is invested again to grow to $7,558.272 in three years
so,
Total gain:
= 25.9712%
The price level increases in three years by:
= 26%
So,
Total real rate of return:
= Total gain - Percentage increase in prices
= 25.9712 - 26
= -0.0288%
The excretory system is related to the increase or decrease in the consumption of water by an animal. The increase or decrease is due to the variation in the antidiuretic hormones in the humans. The retention and excretion of excess water and ions are performed by the kidneys, which is a part of the excretory system.
Answer:
The change in operating income for GM is that the operating income will increase by the amount of other pension costs less expected returns.
However, this change will not affect the net income, as all the items will still be accounted for, accordingly.
Explanation:
GM's pension service cost is the present value of the amount that the GM is required by law to set aside annually to meet its employees' pension-benefits obligations. The reason for the separation is that the service cost is a compensation cost, whereas other pension costs are financial costs and not compensation costs. By this separation, the operating income of GM will increase.
Answer:
The correct answer is A: %70,154
Explanation:
Giving the following information:
True: Finding the present value of cash flows in future years tells you how much you would need to invest today so that it would grow to equal the given future amount.
What is the value today of a $158,000 cash flow expected to be received 12 years from now based on an annual interest rate of 7%?
We need to use the following formula:
PV= FV/(1+i)^n
FV= final value
i= interest rate
n= number of years
PV= 158000/(1.07^12)= $70,154
Answer:
a. In response to concerns from business leaders, a legislator has designed a new tariff on raw materials used by many manufacturing firms. The legislator felt the new tariff was necessary based on input from the private sector that new discoveries of natural resources abroad would threaten to put domestic producers of raw materials out of business. To meet this goal, this tariff will charge $1,500 on every crate of the imported goods plus an additional 6% of the total value of the imported goods.
- protective tariff since it is designed to protect domestic industries from competition of out of state producers. It is designed to increase the price of imported goods.
b. In an effort to balance next year's budget, a senator has proposed a new tariff. She proposed the new tariff with a goal of raising a total of $100 million, To meet this goal, this tariff will charge $2,000 on every ton that is imported.
- revenue tariff since its main purpose is to increase government revenue, not to protect domestic industries.
