Answer:
The correct answer is option b.
Explanation:
Inflation can be defined as a sustained increase in the general price level. Inflation causes the purchasing power of money to erode. The value of cash balances gets reduced.
This causes the real income of workers to get reduced as well. However, a worker will not be harmed by inflation if his/her employment contract includes a cost of living adjustment clause.
This clause will cause the payments made to the workers to increase if there is an increase in the cost of living index.
Answer:
$45,000
Explanation:
Calculation to determine the service cost for the year
PBO, $113,000
Add benefits paid to retirees, $14,500
Less interest cost ($7,500)
Less Beginning PBO ($75,000)
($7,500/0.1)
Service cost $45,000
($113,000+$14,500-$7,500-$75,000)
Therefore the service cost for the year will be $45,000
Answer:
B. They have a $5,000 deficit
Explanation:
The relationship between Income and Expenditure is that Income less expenditure gives us the Profit for the business. Therefore, Income ($25,000) less Expenditure ($30,000) gives a deficit of $5000.
Answer:
7.98 %
Explanation:
Debt is any source that requires repayment of a fixed amount as interest to the holder of the source of finance.
Since we are given the Yield, we can safely use that to calculate the After tax cost of debt as follows
After-tax cost of debt = Interest x ( 1 - tax rate)
= 11.40 % x ( 1 - 0.30)
= 7.98 %
This is pretty hard to determine without a gross amount, dependence, and the state you will in. But it would be your net worth.