Answer:
$500, $250
Explanation:
You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you will receive $<u>500</u> at the end of the year, but that money has a purchasing power of $<u>250</u>.
The nominal rate determines the amount that will received which is 10% of $5000 = $500
However the real rate determines the purchasing power of the amount to be received which is: Nominal rate - Inflation rate = Real rate,
Therefore the real rate = 10% - 5% = 5%
5% x 1000 = $250
Inflation is the single major factor that affects the purchasing power of money, hence the inflation effect must always be subtracted from any returns lenders are expecting, to get their real returns.
Answer:
they are all examples of programming language
Using compound interest
5000 x 1.035^32 gives me 15033 which is triple the original value, therefore it’s 32 years
<span>Similarities of balancing a city budget and balancing a personal budget is that you are both budgeting it and planning for certain expenses that you need to pay.
Differences between balancing a city budget and balancing a personal budget is that city budget is quite big amount while personal budget is just small. City budget involves many people.</span>
Answer:
The carrying value decreases from the issue price to the par value over the bond’s term.
Explanation:
The carrying value of a bond is the par value or face value of that bond plus any unamortized premiums or less any unamortized discounts. The net amount between the par value and the premium or discount is called the carrying value because it is reported on the balance sheet. When a bond is issued at a premium, the carrying value is higher than the face value of the bond.
