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AnnyKZ [126]
3 years ago
10

Select the items the describe possible problems with being unemployed and not earning income.

Business
1 answer:
Leya [2.2K]3 years ago
3 0

The answers are.:

A)

B)

C)

D)

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The two-year interest rate is 10% and the expected annual inflation rate is 5%.
vesna_86 [32]

In economics, the Fisher equation is used to determine the relationship of the nominal interest rate and the real interest rate. This equation takes into account the effect of inflation. Mathematically this is expressed as:

Real rate = \frac{1+Nominal rate}{1+Inflation} -1

The values given are:

Nominal rate= 10% = 0.1

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Substituting known values and by calculation:

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7 0
3 years ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu
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Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

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Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

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3 years ago
Southern california publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalys
steposvetlana [31]

If the company requires a return of 10 percent for such an investment, calculate the present value of the project.

The present value of the project is $72349.51.

Since we consider only incremental cash flows for a project, we consider $21,600 for year one and calculate a 4% increase for each of the additional years.

We then calculate the Present Value Interest Factor (PVIF) at 10% for four years using the formula :

PVIF = 1 / [(1+r)^n]

Next, we find the product of the respective cash flows and PVIF for each year.

Finally, we find the total of the discounted cash flows for the four years to find the Present Value of the project.

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