The process of accumulating capital is called investment.
Investment can be done in various categories like land, labor and capital.
Investment in land does not mean investing only in the lands that are
cultivated or where buildings can be built. It can also include land where
natural resources are available. Capitals can be machinery, buildings, raw
materials and several other things. Labor will include people giving physical
labor as well as those people that use their intelligence. So brain and
physical labor are both investments.
Answer:
PV= $114,699.21
Explanation:
Giving the following information:
Annual payment= $10,000
Number of years= 20
Interest rate= 6%
<u>To calculate the present value, we need to use the following formula:</u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual payment
PV= 10,000*{(1/0.06) - 1 / [0.06*(1.06^20)]}
PV= $114,699.21
Equilibrium rate of return on a 1-year treasury bond formula is:
(1 + r)(1+ i) - 1
Where r = real risk-free rate(not in percentage)
i = inflation expected(not in percentage)
r = 3.55% = 3.55/100 = 0.0355
i = 3.60% = 3.60/100 = 0.036
Plug these values in the aforementioned formula, you would get:
(1 + 0.0355)*(1 + 0.036) - 1 = 0.072778
Now to get back in % multiple it with 100,
You would get 7.278%.
Ans: 7.278%
Answer:
All good marketers
Put themselves in the shoes of their target market
Explanation:
This creates a personal experience of the marketing efforts and makes marketing a more targeted and conscious activity that is aimed at rendering the best service to the customer instead of just exploiting them. The awareness that marketing creates about goods and services is essential in the supply chain and value creation as a whole. To achieve improved success, a good marketing must be able to put herself in the shoes of their target market or customers.