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frozen [14]
2 years ago
7

Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of

the two years. The annual real rate of interest is:______.
A. 6 percent.
B. 8 percent
C. 2 percent.
D. 3 percent.
Business
1 answer:
Kisachek [45]2 years ago
5 0

Answer:

C. 2 percent.

Explanation:

The computation of the annual real rate of interest is presented below:

Provided that

Nominal annual interest rate = 8%

Inflation rate = 5%

So, the annual real rate of interest is

Real rate of return = {( 1 + nominal annual rate of return) ÷ ( 1 + inflation rate)} - 1

= {( 1 + 0.08) ÷ ( 1 + 0.05)} - 1

= 2%

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It tastes better than candy!" is an advertising slogan for a new probiotic gummy. The manufacturer claims that their probiotics
larisa86 [58]

Answer:

The correct answer is D) product differentiation.

Explanation:

Product differentiation is a competitive strategy that aims to allow the consumer to perceive differently the product or service offered by a company, with respect to those of the competition.

Product differentiation can be based mainly on various attributes such as quality, color, size, after-sales service, specialized attention, location, brand recognition or luxury. But any attribute makes perceive a product or service differently is considered product differentiation.

It should be noted that the differentiation also has a subjective element since consumers can perceive that a certain brand is different from another based not on the comparison of objective characteristics but on the idea that they have made of the company and its image.

3 0
2 years ago
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information f
makkiz [27]

Answer:

Variable Overhead Rate Variance  $

  • -$3,450 Favorable

Variable Overhead Efficiency Variance $

  • $ 864 Unfavorable

Variable Overhead Spending Variance $

  • -$3,402 Favorable

Explanation:

Variable overhead rate variance = actual variable overhead - (actual direct hours x standard rate) = $9,510 - (16,200 x $0.80) = $9,510 - $12,960 = -$3,450 Favorable

Variable overhead efficiency variance = (actual labor hours - standard hours) x standard rate = (16,200 - 15,120) x $0.80 = 864 Unfavorable

Variable overhead spending variance = actual hours x (actual rate - standard rate) = 16,200 x ($0.59 - $0.80) = 16,200 x (-$0.21) = -$3,402 Favorable

4 0
2 years ago
In the introduction to his speech on the art of digital photography, Terrance mentioned that he works part-time at a camera shop
elixir [45]

Answer: The correct answer is "a. establish credibility".

Explanation: Terrance was seeking to accomplish the "establish credibility" goal in the speech introduction.

Among the qualities that every speaker should have is credibility, characterized by three other qualities, which are: honesty, knowledge and dynamism. The credibility also has to do with the good reputation of the speaker to obtain acceptance of his message, in addition to being well prepared, that is, having knowledge, competence and experience on the subject.

4 0
2 years ago
A flood damaged several vans belonging to a nongovernmental, not-for-profit organization. A professional mechanic repaired the v
Westkost [7]

Answer:

b. As both an increase in the equipment account and an increase in contributions from donated services.

Explanation:

When the flood damages the vehicles there was a loss in the value of the organisation's equipment. The actor of restoring it to its previous state will require an addition to equipment account. So there will be an increase in equipment.

The services provided by the mechanic were free and will be recorded as a donated service. This is an increase in contributions from donated services.

There is no expense recorded as the services were performed for free.

5 0
2 years ago
Superior Printing, Inc. has provided you with its bank statement and Cash T-account for the month of June. The Controller has as
Anvisha [2.4K]

Explanation:

Bank Reconciliation: The Bank reconciliation deals with the balance of the bank statement and the balance of the cash statement. The aim is to compare those two statements to allow the organization to run smoothly.  

There are various transactions because of which the balance of the bank statement and the balance of the cash statement do not match We change the transactions accordingly to match those statements

The preparation of the  bank reconciliation statement for the month of June is presented in the spreadsheet. Kindly find the attachment below:

The outstanding checks is

= $770 + $4,600

= $5,670

5 0
2 years ago
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