Business, 04.03.2022 14:00 kaylam5599

Initially, Poornima earns a salary of $400 per year and Manuel earns a salary of $200 per year. Poornima lends Manuel $100 for one year at an annual interest rate of 10% with the expectation that the rate of inflation will be 5% during the one-year life of the loan. At the end of the year, Manuel makes good on the loan by paying Poornima $110. Consider how the loan repayment affects Poornima and Manuel under the following scenarios. Suppose all prices and salaries rise by 10% (as expected) over the course of the year. In the following table, find Frances's and Dmitri's new salaries after the 10% increase, and then calculate the $224 payment as a percentage of their new salaries.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 19:00

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

Answers: 2

Answer

Business, 22.06.2019 19:40

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.

Answers: 3

Answer

Business, 22.06.2019 20:00

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be:

Answers: 1

Answer

Business, 22.06.2019 20:50

Which of the following is an example of a monetary policy? a. the government requires credit card companies to protect customers' privacy. b. the government restricts the amount of money that banks can lend. c. the government lowers taxes and increases spending. d. the government pays for repairing damage from a natural disaster.

Answers: 1

Answer

You know the right answer?

Initially, Poornima earns a salary of $400 per year and Manuel earns a salary of $200 per year. Poor...

Questions