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Lelechka [254]
3 years ago
5

According to the Fisher effect, if the "real" rate of interest in a country is 3 percent and the expected annual inflation is 8

percent, what would the "nominal" interest rate be
Business
1 answer:
Pachacha [2.7K]3 years ago
3 0

Answer:

11.24%

Explanation:

Fisher equation:

(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected annual inflation)

1 + nominal interest rate = 1.03 x 1.08

--> Nominal interest rate = 11.24%

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Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]Riverside Inc. ma
Lyrx [107]

Answer:

64% it's the contribution margin of the company.

Explanation:

To find the contribution margin we need to find the gross profit which is the total sales minus the variable cost of goods, te contribution margin doesn't include the fixed costs only the variable ones.

Income Statement    

Quantities                    400      600              750           1.000  

Sales                      $148,000   $222,000   $277,500   $370,000  

Cost of goods sold     -$54,000  -$81,000         -$101,250  -$135,000  

Contribution Margin  $94,000  $141,000    $176,250   $235,000  

                                       64%       64%                 64%             64%

Fixed Cost                -$60,000  -$60,000   -$60,000  -$60,000  

Total Cost                 -$114,000  -$141,000      -$161,250  -$195,000  

Operating Income          $34,000    $81,000    $116,250   $175,000  

5 0
3 years ago
There is a 4 percent error rate at a specific point in the production process. If an inspector is placed at this point, all the
Vsevolod [243]

<u>Solution and Explanation:</u>

The given data is as follows:

Error rate = 4%, per hour payment of inspector = $8, inspection of units = at the rate of 49 per hour, cost = $9 per unit

The problem can be solved as considering an opportunity to have an improvement of 4% in the quality.

In case inspector is not hired then it will cost .04 multiply 9= $.3.6 per unit and in case the inspector is hired it will cost $ 0.163 approx.(8 divided by 49).

Therefore, on comparison, it is recommended to hire the inspector.

8 0
2 years ago
Is the number of children a couple must have in order to insure that the population neither increases nor decreases?
avanturin [10]
I think it is 2. Hope this helps
4 0
3 years ago
An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What
Naddika [18.5K]

Answer:

It will take 1 year and 307 days to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $6,900

Cash flows:

Cf1= $4,200

Cf2= $5,100

Cf3= $6,300

Cf4= $5,500

Discount rate= 15%

<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>

<u></u>

Year 1= 4,200/1.15 - 6,900= -3,247.83

Year 2= 5,100/1.15^2 - 3,247.83= 608.50

<u>To be more accurate:</u>

(3,247.83 / 3,856.33)*365= 307 days

It will take 1 year and 307 days to cover the initial investment.

6 0
3 years ago
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges
Harlamova29_29 [7]

Answer:

Both will charge $6,904 when they transport 16 tons of sugar.

Explanation:

The amount of sugar to be transported is S, since we need to calculate at which amount of sugar both truck companies charge the same total price, we need to solve the following:

first company charges $4,500 + $150.25 S

second company charges $3,696 + $200.50 S

since both companies will charge the same total amount, then

$4,500 + $150.25 S = $3,696 + $200.50 S

$4,500 - $3,696 = $200.50 S - $150.25 S

$804 = $50.25 S

$804 / $50.25 = S

S = 16

$4,500 + ($150.25 x 16) = $4,500 + $2,404 = $6,904

5 0
2 years ago
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