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inysia [295]
3 years ago
6

Compare investment alternatives You have two investment opportunities. One will have an 8% rate of return on an investment of $1

0,000; the other will have a 10% rate of return on principal of $14,000. You would like to take advantage of the higher-yielding investment but have only $10,000 available.
Required:
What is the maximum rate of interest that you would pay to borrow the $4,000 needed to take advantage of the higher yield?
Business
1 answer:
nasty-shy [4]3 years ago
3 0

Answer:

15%

Explanation:

The maximum rate of return that would be paid to borrow an additional $4,000 needed can be calculated as

Rate of return =\frac{Amount of interest}{Amount borrowed}

Rate of return = $600/$4000

Rate of return = 0.15 or 15%

NOTE: The amount of interest is the difference of interest earned at higher yield and interest earned at a lower yield.

Interest earned (higher yield) = $10,000 x 8%

Interest earned (higher yield) = $800

Interest earned (lower yield) = $14,000 x 10%

Interest earned (lower yield) = $1,400

Difference = $1,400-$800

Difference = $600

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A series of political and economic changes known as perestroika, or "restructuring" in Russian, were implemented to revitalize the Soviet Union's sluggish economy in the 1980s. President Mikhail Gorbachev, who designed it, would preside over the nation's most significant political and economic reforms since the Russian Revolution. But the Soviet Union's dissolution in 1991 was largely caused by the suddenness of these reforms, which were accompanied with rising instability both inside and beyond the Soviet Union.

What was the policy of Gorbachev's on Social and political topics?

The Soviet Union's policy of free discourse on social and political topics was known as glasnost (Russian for "openness"). The Soviet Union started to become democratic after Mikhail Gorbachev implemented it in the late 1980s. In the end, the Soviet Union's political system underwent substantial changes: the Communist Party's influence was diminished, and multi-candidate elections were held. Additionally, Glasnost allowed media outlets to more freely disseminate news and information and tolerated criticism of government authorities.

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If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from _____ to _
MrRissso [65]

The expansionary fiscal policy will shift the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

<h3>What is the below full employment?</h3>

Its means when an the short-run real gross domestic product is lower than that same long-run potential real gross domestic product.

Hence, the economic situation will elicit a policy of expansionary fiscal which will affect the aggregate demand graph.

Therefore, the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

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7 0
2 years ago
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Solution:

The total cost for the company is the sum of its fixed cost and variable costs.

Corporate expenditures that do not depend on the amount of goods or services provided by the company are fixed costs.

Variable costs are expenses that change when changes occur in the sum of the good or service produced by a company.

C(x) = 90000 + 100x

C(110) = 90000 + 100 ( 110 )

C(110) = 90,000 + 11, 000 = 101,000

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