Suppose that the nominal interest rate is 7 percent and the real interest rate is 5 percent. Instructions: Round your answers to the nearest whole number. a. What is the inflation premium? (in percentage)

Given the level of inflation, how many years would it take for the price level to double?

Garcia industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. the industry average dso is 27 days, based on a 365-day year. if the company changes its credit and collection policy sufficiently to cause its dso to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? a. $241.45b. $254.16c. $267.54d. $281.62e. $296.44