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kumpel [21]
3 years ago
5

Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the

average rate paid by banks on savings accounts is 0.65% at a time when inflation is around 1.45%.
For the average saver, the real rate of interest on his or her savings is -0 80 %. If banks expect that the rate of inflation in the coming year will be 445% and they want a real return of 6% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is ______ %

Business
1 answer:
Elan Coil [88]3 years ago
4 0

Answer:

10.45 %

Explanation:

Please see attachment

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Explanation:

The accounting rate of return is the percentage rate of return that is expected on an asset or investment as compared to the initial investment cost of the investment.

In an accounting rate of return, the average revenue from an asset.is divided by the company's initial investment in order to derive the ratio or the return that can be gotten over the lifetime of the investment or asset. The accounting rate of return does not consider cash flows or the time value of money.

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Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost $8.00, annual demand of 4
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Answer:

Total cost = Total ordering cost + Total holding cost

Total cost = DCo     + QH

                     Q              2

Where

D = Annual demand

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H = Holding cost per item per annum

D = 40,000 units

Co = $48

H = 18% x $8.00 = $1.44

EOQ = √2DCo

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EOQ = √2 x 40,000 x $48

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EOQ = 1,633 units

Explanation:

EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.

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<h3>What is employee?</h3>

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D - Accounting manager : they supervise, monitor and evaluate all day-to-day accounting activities.

Hope that helped :)
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