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ale4655 [162]
3 years ago
9

Given a fixed nominal interest rate on a loan, unanticipated deflation:

Business
1 answer:
jolli1 [7]3 years ago
6 0

Deflation means that your money has more buying power, thus it decreases the burden of paying off your loan because (in theory) you would have more money available to pay your loan since other prices have gone down.

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Fred and Barney started a partnership. Fred invested $20,000 in the business and Barney invested $32,000. The partnership agreem
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The amount of income assigned to the two partners would be $18,100 and $19,900 respectively.

Explanation:

For computing the amount of income assigned to the two partners, we have to do the following calculations which are shown below:

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For Barney =  Invested amount × rate of return

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= $7,800

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And, the barney income would be = $30,200 × 50% = $15,100

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For Fred = Dividend income + remaining income

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For Barney = Dividend income + remaining income

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                   = $19,900

Hence, the amount of income assigned to the two partners would be $18,100 and $19,900 respectively.

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