Question 27 (2 points)

Monique lends Taylor $1,200 on March 15, 2009. Taylor is expected to return $1,260 on March 14, 2010. Monique expects inflation

Irina-Kira [14]

Answer:

2.94%

Explanation:

Real Rate of Return is the actual rate of return that an investor gets from investment excluding any inflation effect.

Present Value = PV = $1,200

Future Value = FV = $1,260

Numbers of period = n = 1 year

Use Following Formula to calculate the nominal Interest rate

FV = PV x ( 1 + r )^n

$1,260 = $1,200 x ( 1 + r )

$1,260 / $1,200 = 1+r

1.05 = 1 + r

r = 1.05 - 1 = 0.05 = 5%

As the 5% is the Nominal Interest rate

we Will Use the Fisher Effect formula to calculate the real Interest rate

1 + Nominal Interest Rate = ( 1 + Real Interest Rate ) x ( 1 + Inflation Rate )

1 + 5% = ( 1 + Real Interest Rate ) x ( 1 + 2% )

1 + 0.05 = ( 1 + Real Interest Rate ) x ( 1 + 0.02 )

1.05 = ( 1 + Real Interest Rate ) x 1.02

1 + Real Interest Rate = 1.05 / 1.02

1 + Real Interest Rate = 1.0294

Real Interest Rate = 1.0294 - 1

Real Interest Rate = 0.0294 = 2.94%

8 0

3 years ago

Read 2 more answers

17. Functions of a business. Name and explain

ivanzaharov [21]

Answer:

Glossary

Explanation:

Business functions are the activities carried out by an enterprise; they can be divided into core functions and support functions

7 0

3 years ago

3. Company with single taxation is called?

bagirrra123 [75]

Answer:

(a) S-Type

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

A company with single taxation is called S-Type i.e sole proprietorship.

Basically, a sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.

4 0

3 years ago

A supplier charges 15% interest on past-due amounts. Interest on a $512 account is $10.52. For how many days must the count have

labwork [276]

Answer:

For how many days must the count have been overdue assuming the supplier uses a 365-day year? 50 days

Explanation:

ACCOUNT 512

% Interest 15%

Annual interest 76,8

76,8 365

10,52 x

X=50 days

4 0

3 years ago

Robert receives a salary of $60,000 per year, or $2,500 semi-monthly. How

IrinaK [193]

The amount that Robert will pay in unemployment taxes for the entire year will be B. $0.

<h3>Determination of Unemployment Taxes Payable</h3>

Employers are subject to an unemployment tax which is known as Federal Unemployment Tax Act (FUTA) depending on the wages and salaries they pay their workers.

Employers must pay FUTA if their employees earn $1500 or more per calendar quarter.

Employers are not obligated to withhold FUTA from employees if we compare it to other payroll-based taxes.

As a result, no unemployment taxes should be deducted from Robert's pay.

Learn more about unemployment tax here: brainly.com/question/15049474.

7 0

2 years ago