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4 years ago

As interest rates rise, _____.

Business

2 answers:

brilliants [131]4 years ago

7 0

B.it becomes more expensive to hold money as cash is the correct answer

svet-max [94.6K]4 years ago

4 0

The answer is: B.it becomes more expensive to hold money as cash

When interest rates rise, the amount of revenue that you can make when making investments would also rise.

This mean that if you choose to hold your money as cash, you would lose all of the potential earning that you might obtain from turning that money into investments. This make your cash has less monetary value compared to investments.

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MARKETING PLEASE HELP

andre [41]

Answer:

The entire demand curve will shift upwards

Explanation:

SEE IMAGE ATTACHED

The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.

3 0

3 years ago

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be

il63 [147K]

Solution:

Annual coupon payment of the bond is $80

At the beginning of the year, remaining maturity period is 2 years.

Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.

New price of the bond = present value of the final coupon payment + present value of the maturity amount.

New price of the bond = $\frac{80}{1+r} +\frac{1000}{1+r}$

where, r is the yield to maturity at the end of the year.

Substitute 0.06 for r in the above equation,

Therefore new price of the bond is = $\frac{80}{1+0.06} +\frac{1000}{1+0.06}$

= $\frac{1080}{1.06}$

= $ 1010.87

Calculating the rate of return of the bond as

$\text{rate of return}=\frac{\text{coupon+new price-old price}}{\text{initial price}}$

$=\frac{80+1018.87-1000}{1000}$

= 0.09887

Therefore, the rate of return on the bond is 9.887%

≈ 10 %

4 0

3 years ago

A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called

Kazeer [188]

Answer:

Net present value

Explanation:

Below is the given values:

Net present value is the correct answer.

Initial cost of the project = $31800

Market value of the project = $29600

The difference between these two are = 31800 - 29600 = $2200

Net present value shows that the present value of cash inflows minus cash outflows. Moreover, the present value comes by discounting the cash flows at an applicable discount rate.

5 0

3 years ago

D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion t

lisov135 [29]

Answer:

1) equity = assets - liabilities

equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000

2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.

3) D’Lite Dry Cleaners

Income Statement

For the month ended July 31, 202x

Revenues $116,875

Expenses:

Dry cleaning expense $29,500
Rent expense $6,000
Wages expense $7,500
Truck expense $2,500
Supplies expense $3,600
Utilities expense $1,300
Miscellaneous expense $2,700 ($53,100)

Net income $63,775

D’Lite Dry Cleaners

Balance Sheet

For the month ended July 31, 202x

Assets:

Cash $95,325

Accounts receivable $89,750

Supplies $5,900

Land $125,000

Total assets $315,975

Liabilities:

Accounts payable $49,200

Equity:

Capital $266,775

Total liabilities and equity $315,975

D’Lite Dry Cleaners

Statement of Owner’s Equity

For the month ended July 31, 202x

Palk, Joel, capital, beginning balance $180,000

Additional capital raised $35,000

<u>net income $63,775</u>

subtotal $278,775

<u>drawings ($12,000)</u>

Palk, Joel, capital, ending balance $266,775

Download pdf

3 0

3 years ago

Use this information to answer the next question. What is the unemployment rate for this nation? All numbers are in millions: Po

Ksju [112]

Answer:

33.33%

Explanation:

Unemployment rate is the proportion of the labour force without a job

Unemployment rate = (number of unemployed workers / total labour force ) x 100

25 /75 x 100 = 33.33%

5 0

3 years ago