Answer:
10.97%
Explanation:
the formula to calculate real rate of return:
real rate of return = [(1 + nominal return) / (1 + inflation rate)] - 1
real rate of return = [(1 + 12.3%) / (1 + 1.2%)] - 1 = (1.123 / 1.012) - 1 = 0.1097 or 10.97%
the risk free rate is not included in the calculation of the real rate of return, but we can also calculate the real risk free rate of return using a similar formula:
real risk free rate of return = [(1 + risk free rate) / (1 + inflation rate)] - 1 = 3.01%
Answer:
A financial objective is a specific goal or target of relating to the financial performance, resources and structure of a business.
Answer:
$225,000 × [(1 ÷ 8) × 2] = $56,250 ($225,000 - $56,250) × [(1 ÷ 8) × 2] = $42,188 is the correct answer.
Explanation:
Answer:
equity in the business increase by $22000
Explanation:
given
assets increased = $89,000
liabilities increased = $67,000
solution
equity in the business increase by $22000
because we know that by the accounting equation
assets is equal to liability + shareholder equity ................1
so when assets is increase then increase in shareholder or liability or increase in combination or decrease in asset
so here given assets increase $89000
so it must be as per given liability increase by $67000
so balance will be = $89000- $67000 = $22000
it will either increase equity or the decrease in another assets
so here equity in the business increase by $22000
Answer:
Value of nominal GDP ; PY = $ 1380 ans.
Explanation:
Monetarism is an economic school of thought that stresses the primary importance of the money supply in determining nominal GDP and the price level. The "Founding Father" of Monetarism is economist Milton Friedman. He said that Inflation is always and everywhere a monetary phenomenon.
We begin with the equation of exchange. This is the building block for monetarist theory. It says that
M × V = P × Y
where M is the quantity of M1
V is velocity of M1, or the average number of times that the dollar turns over in a given year on the purchase of final goods and services
P is the price level, and Y is real output.
Now changes in M V will change the nominal GDP ; P Y
Initially, we have M V as 200 ( 6) =$1200
Now , we have M = $200 and V = 6 + 15% ( 6 )
V = 6 + 0.9 ; V = 6.9
MV = PY
MV = 200 ( 6.9 ) ; MV = $1380
Hence, value of nominal GDP ; PY = $ 1380 ans.
