Answer:
Results are below.
Explanation:
Giving the following information:
Inflation rate= 7%
Real rate of return= 10%
Present value (PV)= $10,000
Number of periods (n)= 10 years
<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>
Nominal rate of return= 0.1 + 0.07= 17%
<u>To calculate the Future Value, we need to use the following formula:</u>
FV= PV*(1 + i)^n
FV= 10,000*(1.17^10)
FV= $48,068.28
This is the n<u>ominal valu</u>e received after ten years.
<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>
<u></u>
FV= 10,000*(1.1^10)
FV=$25,937.42
A. true the buyer is the party making the offer
Answer:
2.88%
Explanation:
According to the fisher equation :
(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)
(1.07) = (1.04) x (1 + real interest)
(1.07) / (1.04) = (1 + real interest)
1.028846
real interest rate = 2.88%
Career readiness represents the extent to which you possess the <u>knowledge, skills, and attributes</u> desired by employers.
<h3>What is Career readiness?</h3>
Career readiness can be defined as the way in which a person acquire or possess the necessary skills, knowledge that an employer desires an employee to posses.
Career readiness is essential for someone that want to build their career or the person that want to reach the highest peak of their career as this enable them to prepare ahead.
Therefore Career readiness represents the extent to which you possess the <u>knowledge, skills, and attributes</u> desired by employers.
Learn more about Career readiness here:brainly.com/question/27841409
brainly.com/question/3299764
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Answer:
The amount of depreciation expense the lessee should record for the first year of the lease is $108,000
Explanation:
To calculate the depreciation expense for each year the first thing you have to do is to substruct from the initial value the fair value at the end fo the lease, obtaining this way the depreciable amount.
For this case it would be:
$810,000 - $270,000= $540,000
Then you have to divide the depreciable amount by the years of the term the lease.
$540,000/5= $108,000
