The international Fisher effect is the difference in nominal interest rates across countries reflecting the difference in expected rates of inflation in those countries.
<h3>What does the Fisher effect show?</h3>
It shows that the nominal rate of interest in a nation usually follows the inflation rate because an inflation-adjusted rate needs to be formed.
This then leads to a change in exchange rates between countries because the difference in nominal rates shows the difference in inflation which is what devalues or appreciates a currency.
Find out more on the fisher effect at brainly.com/question/16036767.
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In numerical form on the left and written out on amount line
Answer:
A) $38,650; 48.31%
Explanation:
The computation of the contribution margin and the contribution margin ratio is shown below:
Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense
= $80,000 - $22,000 - $19,350
= $38,650
The variable cost is Cleaning Supplies Used + wages expense
And, the contribution margin ratio equals to
= (Contribution margin ÷ sales) × 100
= ($38,650 ÷ $80,000) × 100
= 48.31%
From the problem statement it is clear that here we need to find out simple interest rate.
One do not get interest on any investment made at the end of tenure.
Putting this mathematically:
Let amount at the end of 5th year as A
Simple Interest for 5 years, SI = 750 *5
SI = 3750
Hence A = 10000 +3750
A= 13750
Let rate of return = R
Tenure t = 5
But,
A = P(1 + R*t/100)
13750 = 10000( 1+ R*5/100)
13750 = 10000 + 50000R/100
3750 = 500R
R = 3750/500
R = 7.5 %
Hence rate of return is 7.5% per annum (answer)
