Future earnings are the future benefit to a person who wants to become a lawyer. Wanting to become a lawyer will be an investment for a student in the future. Becoming a lawyer in the future will be the result of the investment and earning from that job is the profit from it.
If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices to decline.
The current stock price is the present value of all future cash Inflows. So if the hobby fee will increase, then the discounting factor will grow, so the existing price of the destiny inflows will decrease, and the inventory charge will fall.
In economics, inflation is a popular increase in the expenses of products and services in an economic system. whilst the overall fee degree rises, each unit of foreign money buys fewer items and services; therefore, inflation corresponds to a reduction in the shopping power of money.
Higher interest costs imply better borrowing fees, human beings will sooner or later begin spending less. The call for goods and services will then drop, as a way to cause inflation to fall.
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D. <span>Regressive tax. The tax
rate decreases as the taxable income increases. There is an inverse relationship
between the tax rate and the tax base (taxable income). Regressive tax imposes
a greater burden on the poor. This is favorable to the rich or those who are
huge income earners.</span>
Answer:
rate of return on investment = 52.4%
Explanation:
<em>The rate of return earned on the investment can be worked out using the Future value of a lump sum formula. The future value of a lump sum is the amount lump would amount to if interest is earned and compounded at a certain interest rate.</em>
The formula is FV = PV × (1+r)^(n)
PV = Present Value- 1,400
FV - Future Value, - 2,134
n- number of years- 1
r- interest rate - ?
2,134 = 1,400× (1+r)^(1)
(1+r)^(1) = 2,134/1,400
r= 1.5242 - 1
r = 0.524
× 100 = 52.4%
r= 52.4%
rate of return on investment = 52.4%
