Answer:
lost value compared to the German mark because inflation was lower in Germany
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
If inflation of the currency of a country increases relative to that of another country, the value of that currency decreases
Answer:
The answer is: E) set up a line of credit with a bank that offers a revolving credit agreement.
Explanation:
A revolving credit is a credit line where the bank charges a business a commitment fee and allows the business to borrow money and use it only when they need the funds. This type of credit line lets the business decide when to use the money according to their cash flow needs.
To find the correct answer, you should know that Barium
Chloride is a strong electrolyte. A strong electrolyte will wholly complete the
circuit as shown by a brightly powered light bulb. Therefore, the correct
answer is a solid with a concentration of 0.20, where the strength of light
emitted is bright. Remember that all strong acids and highly soluble ionic
substances are strong electrolytes. Ionic compounds that are merely slightly
soluble or are insoluble may act as a poor electrolytes.
Your answer would be ( A ) one - sided message
Answer:
1. $1,250
2. $855.95
3. $3,333.33
4. $92.59
5. $46.32
6. $671.01
Explanation:
1.
$100 per year forever
Constant Cash flow every year forever is actually a perpetuity its present value is
PV of Perpetuity = Cash flow / rate of return
PV of $100 Perpetuity = $100 / 0.08 = $1,250
2.
$100 per year for 15 years
Constant Cash flow every year for specific time period is actually a Annuity its present value is
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-15 ) / 0.08 ] = $855.95
3.
$100 per year grow at 5% forever
It is a growing perpetuity and its present value will be calculated as follow
Present value of growing perpetuity = Cash flow / Rate of return - growth rate
Present value of growing perpetuity = $100 / 0.08 - 0.05 = $3,333.33
4.
$100 once at the end of this year
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-1 = $92.59
5.
$100 once after 10 years
Present value = P ( 1 + r)^-n = $100 ( 1 + 0.08 )^-10 = $46.32
6.
$100 each year for 10 years @ 8%
PV of annuity = P + P [ ( 1 - ( 1 + r )^-n ) / r ] = $100 + $100 [ ( 1 - ( 1 + 0.08 )^-10 ) / 0.08 ] = $671.01