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AlekseyPX
2 years ago
9

​Inflation, nominal interest​ rates, and real rates. From 1991 to​ 2000, the U.S. economy had an annual inflation rate of around

​%. The historical annual nominal​ risk-free rate for this same period was around ​%. Using the approximate nominal interest rate equation and the true nominal interest rate​ equation, compute the real interest rate for that decade. What is the estimated real interest rate using the approximate nominal interest rate equation for that​ decade?
Business
1 answer:
Sav [38]2 years ago
3 0

Answer:

the question is incomplete:

nominal interest rate = 5.07%

real interest rate = ?

inflation rate = 3.45%

approximate real interest rate = 5.07% - 3.45% = 1.62%

real interest rate = [(1 + 5.07%) / (1 + 3.45%)] - 1

real interest rate = (1.0507/1.0345) - 1 = 1.57%

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The entry to record the amortization of a patent would include a debit to __________ and a credit to __________. Amortization Ex
Advocard [28]

Answer: Amortization Expense; Patents

Explanation:

The entry to record the amortization of a patent would include a debit to the amortization expense and a credit to the patents.

The journal entry will be:

Debit Amortization expenses XX

Credit Patents XX

Therefore, the correct option is A.

6 0
3 years ago
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures
hoa [83]

Answer:

The predicted value of Revenue is $98.24.

Explanation:

The data provided is for the weekly gross revenue, the amount of television advertising and the amount of newspaper advertising.

Determine the regression equation developed to estimate the amount of weekly gross revenue based on television advertising using Excel.

Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv.

The estimated regression equation with the amount of television advertising as the independent variable is:

<em>Revenue </em>= 89.31 + 1.27 <em>TVAdv</em>

Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv. & News Adv.

The estimated regression equation with both television advertising and newspaper advertising as the independent variables is:

<em>Revenue </em>= 83.78 + 1.78 <em>TVAdv</em> + 1.47 <em>NewsAdv </em>

For TVAdv = $4.9 and NewsAdv = $3.9 predict the value of Revenue as follows:

\text{Revenue} = 83.78 + 1.78\ \text{TVAdv} + 1.47\ \text{NewsAdv}

             =83.78 + (1.78 \times 4.9) + (1.47 \times 3.9)\\\\=98.235\\\\\approx 98.24

Thus, the predicted value of Revenue is $98.24.

5 0
3 years ago
_____ oversee the activities of first-line managers.
natta225 [31]
<span>Mid-level managers oversee the activities of first-line managers. Mid-level managers are responsible for their department and report to top management. Mid-level managers must make sure that resources are allocated correctly and must invest money in training and development, materials, supplies and technology. They communicate the goals and strategies to first-line managers.</span>
6 0
3 years ago
The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte
11111nata11111 [884]

Answer: $135

Explanation:

First find the future value of the proceeds.

= 10,000 * (1 + 5%)⁷

= $14,071

The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.

Convert the interest rate into monthly figure:

= 3%/12

= 0.25%

Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)

14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)

14,071 = Annuity * 103.82

Annuity = 14,071 / 103.82

= $135.53

= $135

5 0
3 years ago
Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability
Maksim231197 [3]

Answer:

If Melina has this power, it is based on her<u> "implied authority".</u>

Explanation:

Implied authority is considered different from actual authority. Implied authority is made in a circumstance where the authority to follow up for the benefit of another person is suggested by the activities of the individual.  

Implied authority refers to the authority which is not written into an agreement.

6 0
3 years ago
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