Interest is calculated as a <u>percentage of the principal</u>. With compound interest, the interest earned is <u>added back into the principle</u> so during the next period you start earning interest on the new, higher amount. Every time the interest compounds, it gets added into the principal and you earn more and more interest.
Example:
10% simple interest on $100:
(.1 * 100) +100 = 10 + 100 = $110
But if you do 10% interest compounding monthly for 3 months you have:
Month 1: (.1 * 100) +100 = 10 + 100 = $110
Month 2: (.1*110) +110 = $121
Month 3: (.1*121) + 121 = $133.10
Even with this simple example you can see how much more money is earned when your interest is compounded and added back into the principal.
Answer:
The net gain or loss in the future market is $105000
Explanation:
Total Future contracts = 20
Total bushel in 1 contract = 5000
Total quantity of wheat = 20 * 5000 = 100,000 bushel
In Cash Market
Break-even price = $ 7.00
Spot price in September = $ 8.40
Therefore company will make a loss here since spot price is greater than break-even price.
Total Loss = (breakeven - spot price) * Quantity
Total loss = (7 - 8.40) * 100000
= $ - 140,000
In future market
Forward contract price = $ 5.95
Spot price in September = $ 8.40
Here company will make a profit because actual buy price is $ 5.95 and spot price is $ 8.40
Total profit = (Spot price - forward price) * Quantity
= (8.40 - 5.95) * 10000
= $ 245000
Net profit/loss = Profit/Loss in cash maket + Profit/loss in futures market
= $ - 140000 + $ 245000
= $ 105000
Answer:
Total total equivalent units for conversion are 17,000
Explanation:
Materials:
cost: 35,200
complete units 16,000
WIP 4,000 100%
BI 0
Total Units 20,000
Material Cost per unit : 1.76
<u>Conversion</u>
cost 37,400
<u>Equivalent Units</u>
The complete units count entirely. The WIP units work as much as process they receive. Finally there are no beginning inventory units
complete units 16,000
WIP 4,000 x 1/4 = 1,000
BI 0
Total equivalent units 17,000
37,400/17,000 = 2.2
Conversion cost per unit: 2.22
Equivalent unit cost: 1.76 + 2.22 = 3.98
Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.
Tindel Inc. might achieve a cost-leadership position while maintaining customer satisfaction by incorporating new programming techniques.
<h3> Cost-leadership position</h3>
The company can tend to achieve cost-leadership position by incorporating new programming techniques.
Reason being that incorporating the new programming techniques will enable them to take advantage of experience curve effects while maintaining there customer satisfaction.
Learn more about Cost-leadership position here:brainly.com/question/15359412
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