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3 years ago

12

An investment had a nominal return of 10.7 percent last year. If the real return on the investment was only 6.5 percent, what wa

s the inflation rate for the year?

1 answer:

densk [106]3 years ago

8 0

Answer:

(1+0.103) =(1+0.057)(1+ Inflation rate)

1.103 =1.057 * (1+ Inflation rate)

1.103/1.057 = 1+ Inflation rate

1.0435 = 1+ inflation rate

Inflation rate = 0.0435 i.e. 4.35%

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The budget director of Heatherâ€™s Florist has prepared the following sales budget. The company had $290,000 in accounts receiva

Elodia [21]

Answer:

Explanation:

1) Schedule of cash receipts:

Since 100% of account receivable is collected in the month following the month of sale, which means $290,000 will be collected in July.

2) If there are no sales in September, amount of accounts receivable the company will report on its 3rd quarter balance sheet will be 0. Otherwise, the ending accounts receivable at the end of 3rd quarter will be = sales amount in September.

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3 years ago

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What are the indirect and direct competitors of nike

vodka [1.7K]

<span>Direct competitors of NIKE can include ADIDAS and REEBOK. Indirect competitors of NIKE can include POLO and SEAN JOHN.</span>

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3 years ago

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The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of

steposvetlana [31]

Answer:

Volume variance= $1,800 unfavorable

Explanation:

Giving the following information:

Standard fixed overhead per direct labor hour $3

Standard direct labor hours per unit 0.75

Budgeted production 3100

Budgeted fixed overhead costs $6975.00

Actual production in units 3900

Actual fixed overhead costs incurred $2200.00

To calculate the fixed overhead volume variance, we need to use the following formula:

Volume variance= budgeted fixed overhead - fixed overhead applied

Volume variance= 6,975 - [3*(3,900*0.75)]

Volume variance= 6,975 - 8,775= $1,800 unfavorable

8 0

3 years ago

Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: The bank owes Sam $100 per y

joja [24]

Answer:

X=97.24

Explanation:

PV = Present Value = X+2000 by the 16th years

PMT = Payments = $100

FV = Future Value = 2000 at the end of 16 years

n= number of years

Applying the equation of future value for annuity

FV = pmt* ((1+r)ⁿ - 1 )/r

Inputting the values;

2000=100*((1+r)¹⁶-1)/r

Solving for r, gives r = 2.9%

Therefore using the formula for PV for annuity;

PV=PMT*(1-(1/1+r)/r)

X=100*(1-(1/1.029)/0.029

X=100*((1-0.9718)/0.029)

X=100*(0.0282/0.029)

X=97.24

7 0

3 years ago

The one-year forward rate of the British pound is quoted at $1.63, and the spot rate of the British pound is quoted at $1.60. Th

AysviL [449]

Answer:

The forward is discount, which is -1.8%

Explanation:

The forward rate is the rate of interest that is applicable or applied to the financial transaction, which will happen in the near future.

The percent is computed as:

= (Spot rate / Forward rate) - 1

where

Spot rate is $1.60

Forward rate is $1.63

Putting the values above:

= ($1.60 / $1.63) - 1

= $0.9815 - 1

= -1.8 %

which is forward discount.

8 0

4 years ago