An example of inferior goods
The rate of increase for these automobiles between the two time periods is 10%
<h3>What is automobiles?</h3>
Automobile is the wheeled vehicle usually having four wheels and generally used for the transportation purposes. For example :- car, buses, trucks, bike etc.
In the above case, the average cost of the automobile is $12000 in 2009 but now it has increased to $ 13200. For the calculation of the increased rate of the auto mobile following formula is used as follows:-
Increased rate = (current value -Initial value )/current value * 100
=( $13,200 - $12,000)/ $12,000 *100
=$1200/ 12000 *100
= 10%
Therefore, the rate of the increase for these automobile between 2 periods is 10%.
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<span>They can set good examples of people that have practiced savings and the result it had given them. Provide seminars of the results and actual computation of savings through targeted years and the possible assets that they may possess through savings. It can also help them avoid some financial problems that they might encounter. </span>
Answer:
Perpetuity.
Explanation:
This is explained to be a type of annuity which is seen to be in position of receiving infinite amount of payments periodically. It is also tagged to be a financial instrument that is seen to pay consistently but periodically. In our world today, it is put to be the present value of a stream of cash that goes on, into the future, forever. In as much as cash payments are infinite, it’s possible to calculate their present total value because the value of each payment incrementally decreases with each year to the point that it approximates zero. Research has shown that in a lot of cases, economic analysts are seen to use this calculation to determine the value of stocks that pay fixed dividends, real estate that earns rent and annuity insurance products.
