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neonofarm [45]
3 years ago
9

Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of

the two years. The annual real rate of interest is
Business
1 answer:
yawa3891 [41]3 years ago
6 0

Answer:

3%

Explanation:

Calculation to determine what the Annual real interest rate is

Using this formula

Annual real interest rate = Annual nominal interest rate - expected annual inflation rate

Let plug in the formula

Annual real interest rate=8%-5%

Annual real interest rate=3%

Therefore Annual real interest rate is 3%

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3 years ago
Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution
Irina18 [472]

Answer:

A. 52% and $11 per unit

Explanation:

The contribution margin ratio is a measure of how much of a business revenue is available for covering its variable expenses. It also reveals how much is left to cover its fixed cost. The contribution margin is the unit income generated from each product sold. To calculate contribution margin ratio we divide contribution margin by sales. i.e

Contribution margin ratio = (contribution margin)/sales

Contribution margin = (sales - variable expenses)/sales

OR

contribution margin = (selling price - average variable cost)/ selling price

Since selling price is $21 and average variable cost is $10

contribution margin = (21 - 10)/21

= 11/21

=52.38% or 0.5238

Contribution margin = $21 - $10

= $11

thus,   A. 52% and $11 per unit is the answer.

variable cost per unit also means average variable cost.

5 0
4 years ago
The founders of "Black Lives Matter" would be consider
Daniel [21]

Answer:

4)Social entreprenurers

7 0
3 years ago
Read 2 more answers
​_________ includes looking at​ relationships, attempting to attribute causes and​ effects, and basing our conclusions on scient
zalisa [80]

Answer:

The right answer is option (D).

Explanation:

According to the scenario, the most appropriate answer is option (D) because systematic study can be defined as the study of social relationships and behavior and making a decision on the basis of data collected.

While the other options are not that appropriate because of the following reasons:

  • The organizational study can be defined as the study when a person organizes a process which results in boosting the social relation.
  • Intuitive study shows the concept of making decision immediately without going deep on data collected.
  • Theoretical study shows the concept of study anything very theoretic and than makes the decision.
  • Case-based study shows the concept of study which checks though the results of similar cases to make any decision.

7 0
3 years ago
To avoid accepting projects that actually should be rejected, a company should ignore intangible benefits in calculating net pre
Alex Ar [27]

Answer:

false

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Monetary amounts should be allocated to intangible benefits and incorporated into the calculation of NPV

8 0
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