When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of... rational decision making. You just studied 8 terms!
Answer:
The nominal interest rate which the bank will offer is of 10.24%
Explanation:
according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:


1.06*1.04-1 = 0.1024 = 10.24%
Answer:
$20,000 Favorable
Explanation:
As for the provided information, we have:
Sales Volume Variance is defined as the variance arising due to difference in sales quantity based on standard price.
Formula for the above = (Actual Sales - Budgeted Sales)
Standard Price
= (5,500 - 5,000)
$40
= $20,000
This variance shall be categorized as favorable, as the actual sales quantity is more than the static budgeted quantity.
Therefore, Sales Volume Variance = $20,000 Favorable