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Verizon [17]
2 years ago
11

Lola wants to make an 6% real return on a loan that she is planning to make, and the expected inflation rate during the period o

f the loan is 5%. She should charge an interest rate of
Business
1 answer:
tatuchka [14]2 years ago
5 0

Answer:

11%

Explanation:

Interest rate is considered to be composed of following components:

- Real risk free interest rate

- Inflation premium*

- Default risk premium

- Liquidity premium

- Maturity premium

Based on above, interest rate (r) is equal to:

r = real risk free interest rate + Inflation premium + Default risk premium + liquidity premium + maturity premium

In our example, assuming that Lola has computed 6% as total of all components except for inflation premium, so total she should charge 11% (6% + 5% inflation premium).

*Inflation premium pays off for expected inflation over the period of loan.

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Select a business/company that you feel does not understand the psychology of waiting and provide examples in their process wher
kramer

Answer:

Let us pick the case of the organization known as Starbucks. Presently we will give 3 models according to which we feel that it doesn't comprehend the brain science of holding up in their procedure where they could deal with the client's view of standing by better utilizing the guideline from the Norman and Maister's articles. While holding up at a Starbucks behind a tremendous line, we can have numerous cases :  

a) Uncertain Waits Are Longer than Explained Waits - There is no clarification or sureness with respect to how a lot of time it will take for the espresso or your refreshment to be conveyed while you are in that line. This is questionable as the client's before you would request mass requests which may take additional time than only one espresso. In this way, these holds up are questionable.  

b) Occupied Time Feels Shorter than Unoccupied Time - While you are remaining in that line, you have an inclination that your 5-10 minutes have been squandered which you could have better used busy working or at home. In this manner, the time was abandoned and hence feels a waste. While on the off chance that the time was involved by some different methods in the line, at that point it would have been justified, despite all the trouble to remain in the line.  

c) Individual Waits Feel Longer than Group - Now very likely in a line, we will have people who are standing by solo for their request in the line. In this manner, the performance hold up will feel longer than holding up in an organization of companions or additionally little converses with outsiders or conveying here and there. In this manner, the issue of solo holding up is a distress and it remains.

5 0
2 years ago
Kim is on a crew that sets up the equipment for a very popular musician. Before the concerts, she sets up lights, microphones, s
andrew11 [14]

Answer:

✔ Audio and Video Equipment Technician

✔ Broadcast Technician

✔ Film and Video Editor

✔ Sound Engineering Technician

Explanation:

5 0
2 years ago
Read 2 more answers
A seller netted $55,000 at closing. if the seller paid costs of $1000 and an 8.5% commission, what was the sale price to the nea
Ulleksa [173]

Answer: The sale price to the nearest dollar was $61,202

We arrive at the answer as follows:

The term 'netted' refers to the seller's profits after deducting costs and commissions.

Hence we need to add back these amounts to arrive at the sale price.

                      Net Proceeds                                       $55,000

<u>Add:              Costs                                                          $1,000   </u>

                     Total                                                         $56,000  

The commission is 8.5%; however commissions are quoted as a percentage of sales price.

Expressed in other words, if the sale price was 100, commissions were 8.5. That would mean that the total above would be the equivalent of 100 - 8.5 = 91.5

From this we can arrive at the sale price as follows:

Sales Price = \frac{56000 * 100}{91.5}

Sales Price = 61,202

6 0
2 years ago
Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Su
Svetlanka [38]

Answer:

Which shop will benefit the most from its expansion?

  • B. Donny, because his workers currently have less available capital to work with

The law of marginal returns applies here, that is why Sunshine donuts didn't produce twice as many by using more machines

How much should Donny realistically expect his production to increase with the new equipment?

  • A. about 80 dozen

Similar to the additional production that Sunshine had in the past.

How much should Sunshine realistically expect her production to increase with the new equipment?

  • A. about 50 dozen

Maybe even a little more than 50 dozen, but definitely less than 80 or 100.

7 0
2 years ago
A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the pri
AlekseyPX

Answer:

Macaroni and cheese is an inferior good.

Explanation:

From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.

If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.

6 0
2 years ago
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