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Sonja [21]
3 years ago
6

Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p

ercent in the coming years. Based on this, lenders should charge a nominal interest rate of Group of answer choices
Business
1 answer:
s344n2d4d5 [400]3 years ago
5 0

Answer:

the nominal interest rate is 7%

Explanation:

The calculation of the nominal interest rate is given below:

As we know that

Nominal interest rate is

= Real interest rate + Inflation rate

So,

The nominal interest rate should be

= 5% + 2%

= 7%

Hence, the nominal interest rate is 7%

The same is to be considered and relevant  

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Alain Mire files a single tax return and has adjusted gross income of $309,000. His net investment income is $48,000. What is th
Anuta_ua [19.1K]

Answer: $1,824

Explanation:

According to the IRS, Net Investment Income tax is the lesser figure of either,

i. The net investment income or,

ii. Modified adjusted gross income less the threshold of $200,000 of the person.

The lesser figure is then multiplied by 3.8% to find the tax.

Alain Mire's net Investment Income is $48,000.

His Modified adjusted gross income less the threshold of $200,000 is,

= 309,000 - 200,000

= $109,000

The lesser figure is his Net Investment Income so Additional Tax is,

= 48,000 * 3.8%

= $1,824

5 0
3 years ago
According to the principle of rational choice, if there is diminishing marginal utility: select one:
Salsk061 [2.6K]
The answer for this question is c
4 0
3 years ago
How physical assets valuation and development and research pose risk.<br>​
Alex Ar [27]

Answer:

The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.

Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

  • When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
  • US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
  • IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
  • There are also other minor differences regarding depreciation, disposals and impairment rules.

Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

7 0
3 years ago
1. True or False: Savings accounts are a reliable way to store money for the future.
son4ous [18]

This question is a little but more difficult to solve, as it depends on the situation. For certain banks it is not worth it due to rates that must be payed, but in your case here I believe that it would be TRUE.

4 0
3 years ago
because your clients job he must live in a city apartment he is increasingly tired of the city life however he daydreams about l
jok3333 [9.3K]
If the choices are the following,

a. The sophisticated city look that reflects his business life. 
b. Barefoot and serene tropical decor to reflect the lifestyle he wishes he had.
c. Plain, non-stylized environment, neither city nor tropical, so that he won't be reminded of his conflicts.
d. Redefined traditional look with one or two large tropical accessories.

then, choice (b) is correct. Since he wishes to live on a tropical island, it would be best if the decorating plans fit his wishes. By that, he relieves himself from the stress of city life.
3 0
3 years ago
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