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dybincka [34]
3 years ago
9

You borrow $10,000 today at a nominal rate of 5%; inflation for the past 10 years has been exactly 2%. Today, inflation instantl

y rises to 7% and stays that way for the duration of your loan. Based on the above information, ceteris paribus (all else equal), today: Group of answer choices
Business
1 answer:
Tamiku [17]3 years ago
6 0

Here is the answer choice to the question

a. the real rate of interest on your loan is 14%.

b. the real rate of interest on your loan was previously 10% and is now 35%.

c. the real rate of interest on your loan is now –2%.

d. you will pay the lender back exactly $9,500.

e. you will pay the lender back exactly $10,700

Answer:

C. the real interest rate on your loan is now -2%

Explanation:

The real interest rate of can be gotten by subtracting the nominal interest rate from the inflation rate from nominal interest rate

Inflation rate = 7%

Nominal interest rate= 5%

= 5 percent - 7 percent

= -2%

The real interest rate can be defined as the rate of interest an investor, saver or lender is going to receive after they have allowed for inflation.

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Jane receives utility from days spent traveling on va- cation domestically (D) and days spent traveling on vacation in a foreign
sammy [17]

Answer:

Explanation:

A point on U=800 is (5, 16)

From BL:

400*F+100D =4000

400*5+100*16 =3600<4000

Therefore u = 800 affordable.

U= 1200

F = 1200/10D

If D = 20

F = 1200/200

=6

Now from BL:

400*6+100*20= 2400+2000=4400>4000

Not affordable.

Maximization:

L = 10DF+ʎ[100*D+400*F – 4000]

Differentiating wrt D and F:

dL/dD = 10F + ʎ*100

dL/dF = 10D +ʎ*400

equating to zero;                      

ʎ= -F/10

ʎ=-D/40

equating the two:

F/10=D/40

D = 4F

From BL:

400*F+100*D = 4000

400F+100*4F = 4000

800F = 4000

F = 5

D = 4*5=20

7 0
3 years ago
Dion, an accountant for Entertainment Sports, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts th
DaniilM [7]

Answer:

Avoid unethical behavior regardless of the consequences.

Explanation:

Unethical behavior has genuine ramifications for the two people and associations. You can lose your employment and notoriety, associations can lose their believability, general spirit and profitability can decrease, or the conduct can bring about critical fines and additionally monetary misfortune.  

Among the most exceedingly awful impacts of exploitative conduct on business is that an organization can't manufacture or keep up any long haul associations with clients.

4 0
3 years ago
You have just used the network planning model for a county road resurfacing project and found the critical path length is 40 day
Romashka-Z-Leto [24]

Answer: E.53

Explanation:

From the above information, the formula for due date is given below.

DUE DATE = Expected Completion Time + (Z * Standard Deviation)

A confidence level refers to the percentage of all possible samples that can be expected to contain the true population parameter. It is computed according to a random sample from the population and most times always associated with a certain confidence level that is a probability, usually presented as a percentage. The 90% says that 90% will include the true mean but 10% won't.

A Z-score is referred to as a numerical measurement that is made use of in statistics of a value's relationship to the mean (that is average) of a group of values, measured in terms of standard deviations away from the mean.

Expected time = 40

Confidence interval = 90 = Z VALUE of 1.282

Standard Deviation= 10

DUE DATE = 40 + (1.282 * 10) = 53days

= 40+ 12.82

=52.82

Approximately 53

Therefore,the time in days is 53 days.

7 0
3 years ago
Read 2 more answers
Select the incorrect statement regarding costs and expenses.
egoroff_w [7]

Answer: Option C

     

Explanation: In simple words, expenses refers to outflow of money from the pockets or account of any individual or an entity with the objective of acquiring or producing something.

Manufacturing cost refers to the amount of resources that were out flowed  the organisation while producing a good or service. Since the resources are getting out flowed, these costs are always recorded as expense over the operational life of the entity.

Labor cost, electricity bill of machines and purchase cost of raw materials etc are some of many examples of manufacturing cost.

7 0
3 years ago
Tony's Deli has cash of $145, accounts receivable of $99, accounts payable of $219, and inventory of $413. What is the value of
grigory [225]

Answer:

the value of the quick ratio is 1.11 times

Explanation:

The computation of the value of the quick ratio is shown below:

Quick Ratio = Total Quick Assets ÷ Total current liabilities

= [Cash + Accounts Receivables] ÷ Accounts Payable

= [$145 + $99] ÷ $219

= $244 ÷ $219

= 1.11 Times

Hence, the value of the quick ratio is 1.11 times

4 0
3 years ago
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