1. What is the variable overhead spending variance? (HINT: The answer $980 unfavorable, but I need work to support this)
2. What is the variable overhead efficiency variance? (HINT: The answer is $4,040 unfavorable, but I need work to support this)
The correct answer is <span>a.if buyers have the ability and desire to buy the clothes
This example has a lot to do with the market demand and production ideas. If the people can't buy it then the product won't succeed. If they won't buy it then it won't succeed either. So you need both the desire and the ability on the side of the buyer. </span>
Let P = the principal
The apr is r = 15.21% = 0.1521
The compounding interval is n = 365
The time is t = 1 year
The value after 1 year is
That is,
A = P(1 + 0.1521/365)³⁶⁵ = 1.1642P
The interest is 1.1642P - P = 0.1642P
The effective percent interest rate is
100(0.1642P/P) = 16.42%
Answer: 16.42%
Given Information:
Real GDP growth = Y = 3%
Money growth = M= 7%
Real interest rate = r = 2%
Velocity = constant = 0%
Required Information:
Nominal interest rate = ?
Answer:
Nominal interest Rate = 6%
Explanation:
The quantity theory of money (QTM) equation is given by
ΔM + ΔV = ΔP + ΔY
ΔP = ΔM + ΔV – ΔY
Substituting the percentages given in the problem,
ΔP = ΔM + ΔV – ΔY
ΔP = 7% + 0% – 3%
ΔP = 4%
The fisher equation which relates real and nominal interest rate is given by
Real interest rate = Nominal interest rate - Inflation rate
Re-arranging the equation to find nominal interest
Nominal interest rate = Real interest rate + Inflation rate
Nominal interest rate = 2% + 4%
Nominal interest Rate = 6%
