Jack recently took out a loan from Diane at an interest rate of 4 percent. Diane expected this year’s inflation rate to be 1 percent and the real interest rate to be 3 percent. The loan is due at the end of this year. Complete the table below by computing the real interest rate for each possible inflation rate. For each situation, determine whether the unexpected inflation level benefits Jack or Diane.
Answers
The complete question has been added with an image for better understanding of the concept. The beneficiaries of the inflation and interest rates will be,
When inflation is 1 percent, Diane will benefit more than Jack;When inflation is 0 percent; Diane will benefit more than Jack; When inflation is 4 percent; Jack will benefit more than Diane; When inflation is -2 percent; Diane will benefit more than Jack. What is inflation?A given increase in rates or prices of any commodity, including monies, over a particular financial period is known as inflation.
The rates and beneficiaries due to the unexpected change in inflation for the above situation is given attached in the image in the form of a table.
Hence, the significance of inflation is as mentioned.
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Related Questions
Whilst you have been away on annual leave the Principal of the agency has exchanged contracts to personally purchase one of your listings. You do not believe that your vendor is aware of the fact that it is your employer as it has been purchased in a company name and there is no declaration on the file or on the copy of the contract in the file. A) What skills will you need to employ? B) What do you do and explain why quoting any relevant bodies, legislation, forms and penalties?
Answers
(A) The skills required to deal with the issue is to computer and research skills and communication skills.
(B) One should resolve the complaints by using the Complaint Register.
What is the meaning of contract?Contract refers to the agreement between the two people or more under the eyes of the law. The agreement made should have the legal consideration and should be enforceable by the laws.
The skills needed to be employed are as follows:-
Knowledge of computers and research techniques to locate relevant legislation for your problems; Effective communication abilities to speak with the vendors and your employer.Complaint resolution processes (using the Complaint Register).This is something the principle should think about:
The Property and Stock Agents Act of 2002 considers it a violation of trust;Non-disclosure in order to receive a benefit; Form 49 and Section 55 MUST be completed;The vendor should not suffer as a result of working with your company; Up to two years in prison and a fine of $29,313 can be imposed as penalties for violating Section 55.The estate agent may also be ordered by a court to repay any commission they received from the vendor.
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GL0202 (No Analysis Tab) - Based on Exercise 2-9 LO A1
Prepare journal entries for each transaction and identify the financial statement impact of each entry.
The financial statements are automatically generated based on the journal entries recorded.
Jan. 1 Debbie Hall, owner, invested $142,750 cash in the company.
Jan. 2 The company purchased office supplies for $2,650 cash.
Jan. 3 The company purchased $14,050 of office equipment on credit.
Jan. 4 The company received $18,300 cash as fees for services provided to a customer.
Jan. 5 The company paid $14,050 cash to settle the payable for the office equipment purchased on January 3.
Jan. 6 The company billed a customer $4,100 as fees for services provided.
Jan. 7 The company paid $2,625 cash for the monthly rent.
Jan. 8 The company collected $2,175 cash as partial payment for the account receivable created on January 6.
Jan. 9 Debbie Hall withdrew $11,700 cash from the company for personal use.
Answers
1. The preparation of the journal entries for each transaction is as follows:
Journal EntriesJan. 1 Debit Cash $142,750
Credit Owner's Equity $142,750
Jan. 2 Debit Office Supplies $2,650
Credit Cash $2,650
Jan. 3 Debit Office Equipment $14,050
Credit Accounts Payable $14,050
Jan. 4 Debit Cash $18,300
Credit Service Revenue $18,300
Jan. 5 Debit Accounts Payable $14,050
Credit Cash $14,050
Jan. 6 Debit Accounts Receivable $4,100
Credit Service Revenue $4,100
Jan. 7 Debit Rent Expenses $2,625
Credit Cash$2,625
Jan. 8 Debit Cash $2,175
Credit Account Receivable $2,175
Jan. 9 Debit Withdrawals $11,700
Credit Cash $11,700
2. The identification of the financial statement impact of each entry is as follows:
Jan. 1 Increase in Assets (Cash $142,750) and Owner's Equity ($142,750)
Jan. 2 Increase in Assets (Office supplies $2,650) Decrease in Assets (Cash $2,650)
Jan. 3 Increase in Assets (Office Equipment $14,050) and Liabilities (Accounts Payable $14,050)
Jan. 4 Increase in Assets (Cash $18,300) and Equity (Service Revenue $18,300)
Jan. 5 Decrease in Liabilities (Accounts Payable $14,050) and Assets (Cash $14,050)
Jan. 6 Increase in Assets (Accounts Receivable $4,100) and Equity (Service Revenue $4,100)
Jan. 7 Decrease in Equity (Rent Expenses $2,625) and Assets (Cash$2,625)
Jan. 8 Increase in Assets (Cash $2,175) and decrease in Assets (Account Receivable $2,175)
Jan. 9 Decrease in Equity (Withdrawals $11,700) and decrease in Assets (Cash $11,700)
Transaction Analysis:
Jan. 1 Cash $142,750 Owner's Equity $142,750
Jan. 2 Office supplies $2,650 Cash $2,650
Jan. 3 Office Equipment $14,050 Accounts Payable $14,050
Jan. 4 Cash $18,300 Service Revenue $18,300
Jan. 5 Accounts Payable $14,050 Cash $14,050
Jan. 6 Accounts Receivable $4,100 Service Revenue $4,100
Jan. 7 Rent Expenses $2,625 Cash$2,625
Jan. 8 Cash $2,175 Account Receivable $2,175
Jan. 9 Withdrawals $11,700 Cash $11,700
Thus, the journal entries show the accounts debited and the accounts credited for each transaction.
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1.1 W (5 marks) Calculate the economic order quantity (EOQ) per annum. Economic order quantity Startrek Secondary School purchases 700 math's sets per annum. The cost of each math set is R80. Each set is sold for R100. The cost of placing a single order is R45. The holding cost is 11% of the unit purchase price.
Answers
Based on the math sets purchased by Startrek Secondary School as well as its various costs, the Economic Order Quantity is 84.61 sets.
What is the Economic Order Quantity?This can be found as:
= √(2 x Annual math sets needed x Ordering cost per unit/ Carrying cost
Carrying cost is:
= 80 x 11%
= R8.80
The EOQ is therefore:
= √(2 x 700 x 48 / 8.8
= 84.61 math sets
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what is responsible supply
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QPD Corporation discovered financial information about its prime competitor which it used to its advantage. QPD did not obtain the information from any illegal source or through any illegal means. As discussed by the authors, which of the following disadvantages of having a corporate form of business is responsible for QPD’s knowledge of the details of its competitor’s financial situation?
Answers
Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.
What is cooperate business?A cooperate business is a business that is owned and manage by group of individuals.
The members also use the product as well as the service.
Coporation gives members access to information which can be divulged to competitors by members.
Therefore, Corporation is the form of business that responsible for QPD’s knowledge of the details of its competitor’s financial situation.
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Please identify a firm using the various variables used in SCM and OHS&S as per legal requirements.
Answers
Canadian Tire Corporation is an example of Canadian firm involved in global operations and SCM.
How the company makes use of SCM and OHSThe company makes use of occupational safety and health and also supply chain management to ensure that the key operations in the firm are being carried out.
The company has over 1700 stores in the Canadian nation. They have workers that are about 100000. This form is one of the biggest retail shops in the nation.
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1. Which of the following is true about finding the present value of cash flows?
A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
B. Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return.
2. Which of the following investments that pay will $18,000 in 4 years will have a lower price today?
A. The security that earns an interest rate of 4.00%
B. The security that earns an interest rate of 6.00%.
3. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 4.00%. Assuming that both investments have equal risk and Eric’s investment time horizon is flexible, which of the following investment options will exhibit the lower price?
A. An investment that matures in four years
B. An investment that matures in five years
4. Which of the following is true about present value calculations?
A. Other things remaining equal, the present value of a future cash flow increases if the discount rate increases.
B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.
Answers
Based on present value calculations, the following are true:
A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.B. The security that earns an interest rate of 6.00%.B. An investment that matures in five years.B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.What is true of present value calculations?Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.
The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.
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Which of the following is true about goods and services?
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If a recent ad deterred you from buying the product, describe why. How would you change it? Share a link if you can (please be sure it's appropriate).
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Some reasons why an ad deterred a consumer from buying a product could be lack of information or jarring communication.
How to build an effective ad?It is essential that the marketing team develop a strategy to engage your potential consumer. For this, it is necessary to align the language and ideas contained in the ad to have the expected effect on the consumer, in addition to identifying the ideal channel for placement.
Therefore, publicity and advertising are essential to generate value for a brand and reach the consumer.
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Several coworkers of yours at the local swimming pool have been taking snacks from the snack bar without paying. This is an example of:
O property deviance.
O production deviance.
O personal aggression.
O political deviance
Answers
This is an example of property deviance. Thus the correct option is (B).
What is production deviance?Production deviance is conduct that formally transgresses the established organizational standards on the minimal standard of quantity and quality of work that must be completed in order to perform one's duties.
The coworkers are wasting the resources of the company and as well as polluting the swimming pool by eating snacks. This is an appropriate example of property deviance.
Thus the correct option is (B).
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a. Some entrepreneurs claim that creating a business plan is not necessary for launching a successful business venture. Do you agree? Explain
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Answer:
In my opinion creating a business plan would make your chances of making a successful business higher since you already know what your doing, it can also help with your thought process and help you consider different aspects of your business. Not having a plan also would lead to all your ideas being in your brain which could make it harder to focus. But many entrepreneurs have started businesses without plans and have succeeded but I think its easier to have a plan.
2. A Canadian confectionary company has Indian distributors for a specific small cake product. The distributor has put in a request for the confection to be available with red decorations. This specific cake has become very popular for consumption during several significant holidays. The manufacturer has the food colouring available and has used it on other products it carries. Sales figures for this product are in the growth phase of its life cycle. Should the manufacturer agree to make this change? Describe two considerations with regards to this change.
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Based on the above scenario, Since it is in its growth phase, I believe that the manufacturer should agree to make this changes.
Why agree to the changes?Note that there are regulations on how to use of the existing food coloring and as such it is vital for the company to see or consider this change.
Note that since it is in its growth phase, the product is widely accepted and there are lot of holiday sales.
Therefore, Based on the above scenario, Since it is in its growth phase, I believe that the manufacturer should agree to make this changes.
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can i apply for a bank account without a utility bill because i have all the requirements needed except a utility bill
Answers
Answer:
You dont need it
If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is
Answers
Answer:
The coupon rate is the stated periodic interest payment due to the bondholder at specified times. The bond's yield is the anticipated overall rate of return. If the bond's price changes and is no longer offered at par value, the coupon rate and the yield will no longer be the same as the coupon rate is fixed and yield is a derivative calculation based on the price of the bond.
Stockholders, employees and environmentalists are examples of stakeholders whose interests
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Stockholders, employees and environmentalists are examples of stakeholders whose interests and needs often conflict.
Who is a stakeholder?A stakeholder can be defined as an independent individual, organization or social group that has an interest in a particular business organization (company), and as such they can either affect or be affected by the decisions taken in the business.
This ultimately implies that, stockholders, employees, investors, and environmentalists are examples of stakeholders whose interests and needs often conflict.
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Is outsurance non compulsory or compulsory
Answers
The outsurance is a non-compulsory act that is not guided by any kind of law.
What is compulsory insurance?Compulsory insurance is that which is guided by law and has to be taken by the businesses in order to claim indemnification at the time of loss or damages.
Outsurance is a business created to fulfill the specific insurance needs of various businesses. It is non-compulsory insurance as it doesn't implement by any law and can be taken by businesses on a voluntary basis.
Therefore, non-compulsory insurance can be the outsurance policy.
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You have been asked to study the effects of an employee-wide training program, in a company of 500 employees, designed to reduce the amount of customer complaints. Describe how you would carry out the study, including the variable or variables you would collect, how you would measure those variables, and what would indicate success.
Answers
The effects of an employee-wide training program, will be done to improve the employee performance via good training programs.
What is the research about?The research method will be a qualitative research. In the work, we are going to analyze and understand and see the theoretical aspect and models linked to employee development via training and development programs, and the influence on employee performance.
The study will give a background about good training effectiveness and how it leads to boasting the employee performance as well as others.
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Healthcare Operations Management: Executing Strategies & Setting Goals
Select a quality or performance problem in your organization or from your past experience – identify the project team members and their roles in your organization – why did you include them? Select a problem-solving tool and map it out – use PDCA, process mapping, root cause analysis, 5 Whys, or the Cause and Effect tool. How could you make improvements in the situation?
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A quality or performance issue may be related to organizational communication. Management tools that can help overcome these problems, such as the PDCA cycle.
What is the PDCA cycle?It is a management tool that consists of solving problems related to organizational processes, instituting four phases to focus on each situation, helping to resolve bottlenecks and continuous improvement of processes. The acronym stands for:
PlanDoCheck ActTherefore, through the PDCA cycle, communication problems could be solved by planning and implementing the optimization of communication channels and strengthening the relationship through feedback and meetings, for example.
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If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is
Select one:
a. below the principal value of the bond.
b. equal to the principal value of the bond.
c. Either A or B may be true.
d. above the principal value of the bond.
Answers
If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is equal to the principal value of the bond. Option B. This is further explained below.
What is a bond?Generally, a Bond is simply defined as fixed-income investments such as bonds that reflect a loan from an investor to a borrower, often a corporation or the government.
In conclusion, In this case, the bond's market value will be equal to the principal value of the bond. if the bond's effective yearly yield is equal to the bond's coupon rate
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Customers who purchase an item on account usually do so with a
—
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Customers who purchase an item on account usually do so with a credit or debit card or a financial program.
What is a credit card?A credit card is a payment card that allows the cardholder to borrow money up to a certain limit in order to make purchases or withdraw cash. The borrower is then required to pay back the borrowed amount, along with interest, at a later date. Credit cards also typically offer rewards or cash back for purchases made with the card.
Therefore, a customer who purchased an item on account usually do so with a credit, or debit card or any other financial program.
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What are the four core principles in business?
Answers
Answer:
Honesty ,Integrity, Promise-Keeping & Trustworthiness, Loyalty
Explanation:
there are many principles related to business. but basic principles of business are Honesty ,Integrity, Promise-Keeping & Trustworthiness, Loyalty. A person must be honest and loyal in his business. A person must fulfill his promises to citizens . A person should lie to his business handlers and users.
2
3
4 5
6
7
which of the following is a type of liability?
A revenue stream
A liquid asset
Accounts payable
Accounts receivable
lease select the best answer from the choices provided
DA
OB
O C
Answers
In the given list accounts payable is a current liability. Thus, the correct answer is C.
What is liability?The legal debts incurred by a firm to third-party stakeholders are referred to as liabilities. Accounts payable, notes payable, and bank debt are examples of these types of liabilities.
Accounts payable is used to indicate the money owing to suppliers for products or services that were purchased on credit.
Therefore, option C accounts payable is the correct answer.
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Do you know the Travis Bruns sales rep for Crown Lift Services case study
Answers
Answer:
what's the question I can help you if u give me the question
Lowering the unemployment rate affects a country by:
Answers
Answer:The answer is a
Explanation: did the assignment
Answer:
Increase productivity
Explanation:
Lowering unemployment rate increases productivity and raises the standard of living of citizens in the country.
Requirements:
You are to complete, in good form, a Statement of Cash Flows for DuLang Industries for the Year Ended December 31, 2019, using Excel.
Good form means the statement must use proper headings, titles, and dates. Underlines, dollar signs, and double underlines where appropriate, please.
Use Excel to do the math for you. When you can use either cell references or formulas. Typing in numbers when you are able to use cell references or formulas will result in a loss of points.
In the worksheet, I have added a "Difference Column" which serves as a starting point for your assignment.
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Answer:
i don't know
Explanation:
i need this profile requirement to go away
Which promotional technique can help an organization achleve its short-term sales objectives
Answers
Answer:
Flash sales is one technique.
Explanation:
Flash sales are fast, short-term sales that encourage people to buy a promoted item.
Question 6 of 20
A product with a high level of elasticity of demand has which feature?
A. Demand for the product consistently falls over time.
B. Demand for the product rises and falls depending on
circumstances.
C. Demand for the prodt consistently rises over time.
D. Demand for the product is limited to a very small group of
Answers
A product with a high level of elasticity of demand has the feature of the B. Demand for the product rises and falls depending on circumstances.
What is Elasticity of Demand?This refers to the extent to which there is a price change that causes a product to have a change in demand.
Hence, we can see that when there is a high elasticity of demand, it is usually because there is a variable change in the quantity demanded in relation to its price and this means that B. Demand for the product rises and falls depending on circumstances.
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G
Which of these roles is the highest ranking person in a company?
A. President
B. CFO
C. COO
D. CEO
Please select the best answer from the choices provided
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Answer:
D. CEO
Explanation:
...........................................
If you had to formulate some goals for cash buil,what would they be
Answers
Answer:
I would want them to be a reasonable price. I would also want them to be a reasonable goal.
Explanation:
I would want them to be a reasonable or average goal.
Over which of the following factors affecting profits does a business have the most control:
Your answer:
Expenses
Economy
Chance
Demand
Answers
The factor that affecting profits to a business that have the most control is the expenses.
How expenses affect profit?The expenses play the major role to affect the profit of business organizations, as it is clear that if the firm incurred more expenses in various things that are not related to the business, then ultimately the profit level decreases, and vice-versa.
Therefore, option A is correct.
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