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:
Explanation:
The value of the preferred stock would be
= Annual dividend ÷ annual yield
= $100 × 10% ÷ 8%
= $10 ÷ 8%
= $125 per share
And, the new market value would be
= Annual dividend ÷ annual yield
= $10 ÷ 13%
= $76.92 per share
For computing the stock value or market value we simply divide the annual dividend by the annual yield
Recently I conducted a presentation to an audience composed mostly of teenager about the importance of team work. It took place at the American Corner of the State Library. It comprised of about 50 teenagers from various states.
<h3>How did you adapt it to your public?</h3>
Because they were teenagers, I used words that were more suited to their generation.
Because it was a pseudo (or semi) formal presentation, I was free to use words such as;
- Do.pe - cool or awesome
- Gucci - Good, cool, or going well.
- Lit - amazing
<h3>How did your auditors react? what did you get out of it?</h3>
The auditors were well informed about what I was doing so they welcomed it a a good idea.
The objective was to be able to communicate to them in a way that showed that the presenter understood them.
This helped the presenter to connect as well as communicate effectively.
Learn more bout presentation at;
brainly.com/question/24653274
#SPJ1
Answer: the full-employment budget has a deficit
Explanation:
When current government expenditures exceed current tax revenues and the economy is achieving full employment, it means that the full-employment budget has a deficit.
This means that the government of that particular economy is spending more than what it generates. This lead to the deficit that has been incurred.
