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3 years ago

1. The IS curve plots the relationship between the interest rate and that arises in the market for .

Business

1 answer:

Julli [10]3 years ago

6 0

Answer:

The correct answer is a. national income; goods and services

Explanation:

This is a relationship that we use in macroeconomics.

The IS curve describes the combinations of two variables , they are interest rate and the level of income, when the market of goods and services is in equilibrium.

So, The IS curve plots the relationship between the interest rate and national income that arises in the market for goods and services

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Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res

dimaraw [331]

Answer:

Nominal interest rate = 12.23%

Explanation:

Given - Aerotron Electronics has just bought a used delivery truck for

$15,000. The small business paid $1,000 down and financed the

rest, with the agreement to pay nothing for the entire first year and

then to pay $526.83 at the end of each month over years 2, 3, and

4 (first payment is in 13th month).

To find - a. What nominal interest rate is Aerotron paying on the loan.

Proof -

As given ,

Price - $15,000

Down Payment - $1,000

⇒Loan Payment = $15,000 - $1,000

As given,

He will not pay for the entire first year. After that he will pay $526.83 for next 3 years.

Now,

Interest rate for 1 month = r %

So,

Loan after 1 year = 14,000( 1 + r)¹²

And

Annuity factor = $\frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }$

and t = 3 years = 36 months

Now,

As we know,

Monthly loan payment = $\frac{Loan amount}{Annuity factor}$

⇒$526.83 = 14,000( 1 + r)¹² / $\frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }$

By solving we get

r = 1.019%

Now,

Nominal interest rate = 1.019%×12 = 12.23%

7 0

2 years ago

Nipigon manufacturing has a cost of debt of 9 %, a cost of equity of 11%, and a cost of preferred stock of 10%. nipigon currentl

Vanyuwa [196]

the weighted average cost of capital for Nipigon is 0.049716

Calculate the weighted average cost of capital for Nipigon

cost of Equity share= 120,000 x $25= $30,00,000

cost of Preference share= 49,000 x $38= $18,62,000

cost of debt= $9,50,000

Total cost = $30,00,000 + $18,62,000 + $9,50,000

= $58,12,000

Weightage

Equity= $30,00,000/$58,12,000= 0.516

Preference= $18,62,000/$58,12,000= 0.320

Debt= $9,50,000/$58,12,000= 0.164

Rates

Equity = 0.11

Preference= 0.10

Debt= 0.09 (1-0.4)= 0.54

weighted average cost

Equity= 0.516 x 0.11 = 0.05676

preference= 0.320 x 0.10= 0.0320

Debt= 0.164 x 0.54= 0.00886

Total weighted average cost= 0.05676+0.0320+0.00886

=0.049716

What is the weighted average cost method?

A weighted average computation accounts for the varying levels of significance of the numbers in a data collection. A specified weight is multiplied by each value in the data set before the final computation is completed when calculating a weighted average.

Learn more about weighted average cost method: brainly.com/question/8543883

#SPJ4

3 0

1 year ago

Ethan is planning for his retirement. He has narrowed it down to two investment options. The first is an ira where monthly payme

vlada-n [284]

Answer:

IRA; $3,552.72

Explanation:

3 0

1 year ago

Which of the following would cause a leftward shift of the supply curve for computers? A. an increase in the price of printed ci

Margaret [11]

Answer:

The answer is A.

Explanation:

All other things being equal, an increase in the cost of production of a product will decrease the units of the product being reduced and this reduction in supply shifts the supply curve to left while a decrease in the cost of production will increase the units of the product being produced and this shifts the supply curve to the right.

Printed circuit boards is one of the materials used to build computers and since the price has increased, the cost of producing computer also increases and this will make the producers to produce less, shifting the supply curve to the left.

6 0

2 years ago

During 2019 the Barker Company had a net income of $75,000. Below is information taken from Barker’s last two balance sheets: 20

Kitty [74]

Answer:

cash provided by operating activities 84,000

Explanation:

net income 75,000

Adjustment (A)

gain on land (500)

depreciation 1,500

Adjusted net income 76,000

Change in working capital

↑account receivable (3,000) (B)

↓long term AR 10,000 (C)

↑Account payable 1,000 (D)

Net changes 8,000

cash provided by operating activities 84,000

<u>Notes:</u>

(A)

The net income may have non-monetary term, we need to remove those to get and adjusted net income on a cash basis

the gain on land is not a monetary term. We will record the proceeds in cash for the sale under investment activities, not operating as the business is not selling land every year.

depreciation is an accounting metric, is not an actual expense, it doesn't involve cash.

(B)

the increasein the Ar means more sales were not collected therefore, less cash collected.

(C)

the decrease in the long term AR represent the collection, so it increases the cash

(D)

the increase in account payable represent the delay of payment, so company has more cash available.

7 0

2 years ago

1. The IS curve plots the relationship between the interest rate and ______ that arises in the market for ______.

1. The IS curve plots the relationship between the interest rate and that arises in the market for .