These questions are for microeconomics.
1) Your dad has $100,000 to invest and is considering a stock that is expected to yield about $10,000 per year in dividends. If you advise purchase of stocks that pay out no earnings as dividends, your dad complains there will be no income. How would you explain that there still is an income of $10,000 per year?
2) A piece of land is expected to sell for $100,000 in five years, and currently sells for $30,000. The current interest rate is 2%. What is expected to happen to the interest rate over the next five years?
If you can, can you please provide an explanation as well? Instead of just giving an answer, I want to learn how to do it.
Thank you to anyone who helps!