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dem82 [27]
3 years ago
13

You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you w

ill receive ________ at the end of the year, but that money has a purchasing power of ________. Group of answer choices $6,000; $5,500 $5,100; $5,050 $5,050; $5,025 $5,500; $5,250
Business
1 answer:
blondinia [14]3 years ago
6 0
The first would would be $5,500 and then the last space would be $5,250
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In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe
Murrr4er [49]

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

7 0
3 years ago
The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increase
Sonbull [250]

Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

7 0
3 years ago
Chandler Tire Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Pr
mojhsa [17]

Answer:

The second project should be chosen. Because the present value of the second project is greater than that of the first project.

Explanation:

The project that should be chosen can be determined by comparing the present value of both projects.

Present value is the cash flows from a project discounted at the discount rate.

Present value can be found using a financial calculator;

For project 1,

Cash flow each year from year one to six is  $52,000

Discount rate = 15%

Present value =$196,793.10

For project 2,

Cash flow each year from year one to eight is  $48,000

Discount rate = 15%

Present value =$215,391.43

The second project would be chosen because its present value is greater than that of the first project.

I hope my answer helps you

6 0
3 years ago
What is a deficit?
Marizza181 [45]

Explanation:

In any single year, federal government takes in money and spends money, any year in which the government spends more than it takes out it runs a deficit.

8 0
3 years ago
Read 2 more answers
What is the different between consumer and customer?​
lara31 [8.8K]

Answer:

this is your answer good day

Explanation:

Customer – one who is a recipient of services or products from a company or individual for money … costumer-is someone who sells or makes costumes. customer-is someone who buys from shop or company.

7 0
3 years ago
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