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3 years ago

The ratio (Price Level in Earlier Time) / (Price Level Today) would be used to:_________

Business

1 answer:

Aneli [31]3 years ago

3 0

Answer:

Option d (convert.................inflation) is the correct approach.

Explanation:

The proportion $\frac{(Price\ level \ of \ earlier \ times)}{(Price \ level \ of \ today)}$ would have been utilized to incorporate or transform today's moment to something like an earlier market value, making adjustments rising prices.
As well as the rate of return $\frac{(Today's \ price)}{(Earlier \ price)}$ will indeed transfer the previous price to current prices, modifying inflation.

Some other preferences really aren't comparable to the scenario in question. So the above obvious response is the correct one.

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Why was it profitable for gm and ford to integrate backward into component-parts manufacturing in the past, and why are both com

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3 years ago

Read 2 more answers

Juanita worked hard all year so that she could go to nursing school the following year. She put her savings into a mutual fun

Shkiper50 [21]

Answer:

Real Interest Rate = -2.7%

Explanation:

The formula to calculate the Real Interest rate is:

$r=(\frac{1+i}{1+p})-1$

Here,

r = Real Interest Rate

i = Nominal Interest Rate = 3% = 0.03

p = Rate of Inflation

We have the value of Nominal Interest Rate. Before using the formula we need to calculate the Rate of Inflation. We have the values of CPI at the beginning and end of the year. From these we can calculate the Inflation Rate. The formula to calculate the inflation rate is:

$p=\frac{CPI_{new}-CPI_{old}}{CPI_{old}} \times 100\%$

Using the values in this formula, we get:

$p=\frac{180-170}{170} \times 100\%\\\\ p=5.88\%$

Now we have all the values that we need to use. The values in the formula will be used in decimals, not in percentages. Substituting the values, we get:

$r=(\frac{1+0.03}{1+0.588} )-1\\\\ r=-0.027\\\\ r=-2.7\%$

Thus, the Real Interest Rate that Juanita earned is -2.7%. This shows that rate of Inflation is more than the Nominal Interest and the value of her savings actually decreased compared to the beginning of the year.

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3 years ago

Linden, Inc. uses a 6,400 square foot factory space that it rents for $3,050 a month for all its manufacturing activities. Linde

Gemiola [76]

Answer:

Rent assigned to preparation and setup cost pool is $714.84

Explanation:

Preparation and setup takes 1,500 square feet out of the total 6,400 square feet available,hence the factory rent assigned to preparation and setup from the total rent of $3,050 i calculated thus:

Preparation and setup assigned rent=total rent/total square feet*preparation and setup square feet

=$3050/6400*1500

=$714.84

That represents the rent amount attributable to preparation and setup cost pool on monthly basis

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3 years ago