Answer:
The bank
Explanation:
The bank benefits because when setting up the loan, the determined rate accounted for a 4% reduction in purchasing power, while the actual reduction in purchasing power was 2%. Therefore, Zac will be paying back "money that is worth more" and the bank benefits.
Answer:
c. supply of bicycles will shift to the left.
Explanation:
If the minimum wage is increased, the cost of hiring labour increases and this increases the cost of production. The increase in the cost of production makes producers reduce supply in a bid to cut down cost.
A reduction in supply leads to a leftward shift of the supply curve.
I hope my answer helps you
Answer:
e. $638
Explanation:
payment to be made as per forward contract (IN $)
= 39960/ 1.682
= $23757.43
now the actual rate after 90 days is 1.638
payment at 1.638 rate = 39960/ 1.638
= $24395.6
loss by hedging = $24395.6 - $23757.43
= $638.17
Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.
Answer:
December 31 inventory = $208,000
Explanation:
Given:
Goods costing = $170,000
Goods purchased = $20,000
Goods sold = $18,000 for $26,000
Computation:
December 31 inventory = $170,000 + $20,000 + $18,000
December 31 inventory = $208,000
Answer:
b. $150
Explanation:
Standard deduction refers to deduction available to an individual at a flat rate say 30%.Whereas in itemized deductions, an individual can claim deductions at different rates on different items.
Usually itemized deductions are more beneficial to an individual and in case tax saving in these cases exceeds total standard deductions, itemized deductions should be preferred.
In the given case, contribution of $1000 to church shall amount to a deduction. Since the tax rate applicable to the individual is 15%, the savings in tax shall amount to 15% of $1000 i.e $150.
