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bearhunter [10]
3 years ago
15

The consumer price index was 200 in 2008 and 190 in 2009. The nominal interest rate during this period was 4.5 percent. What was

the real interest rate during this period
Business
1 answer:
leva [86]3 years ago
3 0

Answer:

the real interest rate is 9.5%

Explanation:

The computation of the real interest rate is shown below:

But before that inflation rate need to be determined

Inflation rate is

= [CPI this year - CPIlast year] ÷ CPI last year

= {(190 - 200) ÷ 200} ×  100

= -0.05 × 100

i = -5%

Now the real interest rate is

real interest rate = nominal interest rate - inflation rate

= 4.5% - (- 5%)

= 9.5%

Hence, the real interest rate is 9.5%

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Why might the director of Moving Windmills have wanted to share William Kamkwamba’s story through film rather than though writin
MaRussiya [10]

Answer:

The best reason is that; He wants the audience to feel William Kamkwamba is speaking directly to them.

Explanation:

5 0
3 years ago
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Which of the following is an allocation base commonly used under the traditional methods for allocation of overhead costs?
Ksju [112]

Answer: Direct labor hours

Explanation: In simple words, direct labor hours refers to the standard amount of time that the labor takes to complete a task. It is a very common and has been used traditionally as an allocation base for the overhead costs.

Using this as a base, the accountant can allocate the overheads by allocating the per unit cost on the basis of direct labor hours worked in a particular span of time.

Hence, from the above we can conclude that the correct option is B.

6 0
3 years ago
When the Mexican government changes the fixed exchange rate of the peso relative to the U.S. dollar from 1.5 (pesos/U.S. dollar)
Sunny_sXe [5.5K]

Answer:

The answer is: E) devaluated; appreciated

Explanation:

A currency devaluation happens when  a country´s currency is deliberately adjusted downward to make it lose value relative to another currency. If this downward adjustment happens in the foreign exchange market and is not deliberately done by a government, is called currency depreciation.  

A currency revaluation happens when a government deliberately adjusts the value of its currency upwards to make it gain value relative to another currency. When this upward adjustment happens in a foreign exchange market and is not deliberately done by a government, is called currency appreciation.

5 0
3 years ago
Pretax financial statement income for the year ended December 31, 2018, was $25 million for Scott Pen Company. Scott’s taxable i
valkas [14]

Answer:

Option B $9 million is the correct answer.

Explanation:

The current portion of income tax expense is the taxable for the year multiplied by the prevalen tax rate in the year.

Current portion of income tax expense=taxable income*tax rate

taxable income is $30 million

tax rate is 30%

current portion of income tax expense=$30 million*30%=$ 9 million

Option B is the correct answer

However,if one chooses option A,it implies that one had used pretax net income of $25 million in computing the income tax expenses instead of taxable income on which tax is payable

6 0
3 years ago
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Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for develop
zepelin [54]

Answer:

Hager should recognize a pre-tax gain on this exchange of $12,000

Explanation:

In order to calculate the pre-tax gain on this exchange that should be recognized, we would have to calculate first the total gain as follows:

Total Gain=$480,000-$384,000

Total Gain=$96,000

Because the exchange lacks commercial substance and some cash was received a portion of gain is recognized=$60,000/$480,000=0.125

Therefore, amount of pre-tax gain=$96,000*0.125=$12,000

Hager should recognize a pre-tax gain on this exchange of $12,000

5 0
3 years ago
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