Suppose the nominal rate of interest on a 5-year loan is 8% per year compounding annually and the real rate of interest is 4.5% per year. what is the expected rate of inflation? (hint: since the rate of inflation is low, leave out the compounding effect.)

The ivring berlin learning center would like a possible net profit of $650,000 on its new resource manual it sells to schools. the fixed costs for producing the manual are $780,000 and the variable cost per package is $19.85. if the estimated unit sales are 1,250,000 units, what selling price unit should the ivring berlin learning center try?