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Lerok
11 days ago
10

Alex wants to measure the nominal 1998 GDP of $993 billion in 2008 dollars. From the data he gathered, he knows the deflator for

1998 is 30 and for 2008, it is 74, and that real interest in those years was 6.23% and 3.21% respectively. If he avoids making a misleading calculation, what will the value be?
Business
1 answer:
soldi70 [3.1K]11 days ago
5 0
$2449. Explanation: Alex intends to adjust the nominal 1998 GDP of $993 billion into 2008 dollars. The deflator for 1998 is 30, while it stands at 74 for 2008. So, to avoid deceptive calculations, the nominal 1998 GDP of $993 billion in 2008 dollars computes to 993/30 × 74 = $2449.4, which rounds to approximately $2449.
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Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a jou
soldi70 [3139]

Answer:

A. Dr Amortization expense $43,750

Cr Patents $43,750

B. Dr Amortization expense $5,230

Cr Patents $5,230

C. Dr Amortization expense $14,000

Cr Franchises $14,000

Explanation:

Journal entry preparations

A. Dr Amortization expense $43,750

($350,000÷8 years = $43,750)

Cr Patents $43,750

(Recording amortization for the patent)

B. Dr Amortization expense $5,230

($52,300÷10 years = $5,230)

Cr Patents $5,230

(Recording amortization for the patent)

C. Dr Amortization expense $14,000

($70,000÷5 years = $14,000)

Cr Franchises $14,000

(Recording amortization for franchises)

8 0
1 month ago
Consider a basket of consumer goods that costs $60 in the United States. The same basket of goods costs NOK 40 in Norway. Holdin
Katen [2907]

Answer:

The real exchange rates calculated are 4.5 and 3

Explanation:

We understand that

Real exchange rate = Nominal exchange rate × (Basket cost in US ÷ Basket cost in Norway)

Utilizing this formula, the calculation proceeds as follows:

For a nominal exchange rate of 3, the real exchange rate is calculated as follows:

= 3 × (60 ÷ 40)

= 4.5

For a nominal exchange rate of 2, the real exchange rate is:

= 2 × (60 ÷ 40)

= 3

7 0
16 days ago
To produce espressos, a coffee shop has fixed costs of 200 dollars each day and variable costs of one dollar per espresso. The n
stepan [3001]

Response

The solution and methods for the problem are included in the upcoming image.

Clarification

Please take into account the information supplied by the task. If you have any inquiries, feel free to contact me again. All the problems are addressed on a single page with references to the formulas.

7 0
20 days ago
A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi
Mariulka [3175]

Answer:

0.00573

Explanation:

Today's bond cost is $99.43

The bond's value at the year's end is $100

The difference calculates to: $100 - $99.43 = $0.57

This amount of $0.57 indicates the bond's yield. Therefore, the yearly yield is computed as $0.57/$99.43 = 0.00573

This yield represents the one-year discount rate applicable for a future value of $100, where its present value is $99.43.

Final Answer

0.00573

5 0
8 days ago
In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid
soldi70 [3139]

Answer:

To tackle this issue, let's begin by calculating the total expenses:

Total expenses = Capital expenses + Capital cost

Total expenses = $20 M + 0.10 * $20 M

Total expenses = $22 M

The break-even price reflects when total income matches total expenses. Thus:

$15 M + 20,000 * X = $22 M

Where X indicates the break-even cost per room for one night

Calculating for X:

20,000 * X = $7 M

X = $350

Thus, the break-even rate is $350 per room for one night.

Explanation:

Mark as brainiest

5 0
22 days ago
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