1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry [639]
3 years ago
6

Jack's manufacture company have experienced inflation for the past three years as follows: the first year's periodic inflation r

ate is 3%, and the second year's periodic inflation rate is 4%. The average inflation rate for the 3-year period is 5%. What is the periodic inflation rate for the third year?
Business
1 answer:
ankoles [38]3 years ago
5 0

Answer:

8.09%

Explanation:

Year          Inflation rate    1 + Inflation rate

1                     0.03                     1.03

2                     0.04                     1.04

3                         x                       1+x

Average rate  0.05                   0.05

1 + Average rate  = [(1+r1)*(1+r2)*(1+r3)]^(1/3)

1.05 = [1.03*1.04*(1*x)]^(1/3)

[1.0712*(1+x)] = (1.05)^3

[1.0712*(1+x)] = 1.157625

1 + x = 1.157625 / 1.0712

1 + x = 1.080681

x = 1.080681 - 1

x = 0.080681

x = 8.09%

Thus, the periodic Inflation rate in year 3 is 8.09%

You might be interested in
Which of the following is true of innovation? a. Innovations are less likely to come from small businesses than from big busines
Alchen [17]

Answer:

The correct answer is d. Small businesses supply over half of all innovations in the U.S. marketplace each year.

Explanation:

The Patent System (SP) is an incentive scheme to boost the process of invention-technological innovation. The primary objective of a SP is that it has the capacity to protect innovators with the purpose of increasing the technical progress of the economy, but that, at the same time, it is efficient in spreading these innovations in order to boost economic development.

It is generally believed that small companies make little use of the patent system because they find it complicated and difficult; Some even think they don't even exist. However, studies show that "less relevant" companies were more active in developing emerging technologies than expected.

In this sense, it was shown that companies with less than 25 employees promoted more patents than companies that housed 50 workers who, in turn, developed a greater number of patents than companies with 100 employees, and so on.

7 0
4 years ago
When applying a questioning mindset, what follows identify whether there is sufficient evidence to support the conclusion?.
Inga [223]

The step that follows an identification when applying a questioning mindset is corroborating of the argument by looking for other evidence.

<h3>What is argument corroboration? </h3>

This refers to an act of comparing a new text to another in order to check the accuracy of the evidence or the plausibility of the claims and reasons.

In conclusion, the step that follows an identification when applying a questioning mindset is corroborating of the argument by looking for other evidence.

Read more about corroboration

<em>brainly.com/question/4278160</em>

5 0
3 years ago
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because when th
erma4kov [3.2K]

Answer:

The correct answer is option c.

Explanation:

A firm is able to maximize its profit when the marginal revenue earned is equal to the marginal cost incurred. This is true for all market structures whether competitive or imperfect competition.  

When the output is produced at the point where marginal revenue and marginal cost are equal, it implies that the last unit produced is adding more to revenue than to costs. And the production of the last unit is increasing profits or reducing losses.  

At this point, the marginal profit is zero when the marginal profit becomes negative it implies that the total profit is decreasing. so for profit maximization marginal profit should be zero or marginal revenue should be equal to marginal cost.

7 0
3 years ago
2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J
cestrela7 [59]

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

4 0
3 years ago
Barry purchases a whole life insurance policy. Which of the following choices is true?
Ghella [55]
The answer is because
5 0
3 years ago
Other questions:
  • Employees who handle and prepare food should:
    9·1 answer
  • If an employee is to be terminated, when is the best time to inform the employee?i/o psychpology
    15·1 answer
  • Which of the following is a career pathway for business management and administration? (APEX)
    10·1 answer
  • Builtrite’s common stock is currently selling for $48 a share and the firm just paid an annual dividend of $2.80 per share. Mana
    13·1 answer
  • The American Council for an Energy Efficient Economy works to _______.
    15·2 answers
  • Use the below information to determine cash flows from financing activities.
    10·1 answer
  • Letterheads _____.
    12·1 answer
  • Which of the following is a benefit of customer profiling for the customer?
    13·1 answer
  • The budget for a project designated $2000 for work performed and till this point in time, has spent $5000. If the budget had inc
    11·1 answer
  • Has the ceo carried out his or her responsibility for educating the board? Why or why not?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!