We can actually see here that when people save for retirement, they frequently buy stocks and bonds. We call this <u>investment </u>and it <u>can </u>directly increase the value of GDP.
<h3>What is retirement?</h3>
Retirement is actually known to be a process by which someone withdraws from a position or occupation or the active working life of someone as of age or some other factors. People usually retire from their active working ages as a result of age or other conditions that might lead to that.
We see here that retirement is usually needful in order for the retired person to enjoy his old age and be free to engage in what he or she loves doing at the retired age.
We see here that the above is correct concerning the issue of investment.
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Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
<span>In a situation described in the question where member countries remove all barriers to the trade of goods and services with other member countries, but are permitted to establish their own policies with non-member countries Is known as an economic partnership.</span>
Answer: 4%
Explanation:
From the question, we are informed that Sheffield Company had an investment which cost $250000 and had a salvage value at the end of its useful life of zero and that Mussina's expected annual net income is $5000.
It should be noted that the annual rate of return is calculated as the average Income divided by the average investment. Here, the average Income is $5,000 while the average investment will be ($250,000/2) = $125,000.
Therefore, annual rate of return will be:
= $5000/$125,000
= 4%