All categories

2 years ago

Would simple interest or compound interest grow a person investment better? Explain.

Business

1 answer:

Evgesh-ka [11]2 years ago

6 0

Answer:

Compound interest is better.

Explanation:

When it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you're calculating the annual percentage yield. That's the annual rate of return or the annual cost of borrowing money.

You might be interested in

Your airplane has 845 miles to travel. So far the airplane has traveled 429 miles. How many miles does the airplane have to trav

erma4kov [3.2K]

望京出美腐崩。的絕彩絕。第陽幸了陣輕癖巨尸了三一隨穿天希麼什疒ㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅋㅁ헣ㅅ푸ㅗㅠㅗㅛㅛㄷ

7 0

3 years ago

Finke Company's employees are paid each Friday for hours worked the previous week. At the end of the accounting period, Finke Co

kolezko [41]

Answer:

d. Claims exchange transaction

Explanation:

Claims exchange transaction -

It refers to any discrepancy in the claims , is referred to as claims exchange transaction .

In this case the claim of one reduces and others increases and hence the total claim remains constant .

Hence , from the given scenario of the question ,

The correct option is d. Claims exchange transaction .

6 0

3 years ago

Describe how hrd is linked to the overall goals and strategies of an organization

Yuki888 [10]

Raising standards and productivity, helping firms adapt to change, boosting employee morale and cutting absenteeism, improving the quality of working life, and building a learning culture are just a few benefits of HRD.

Why is HRD essential to achieving company goals?

Because it is an investment in one's employees that will ultimately result in a stronger and more productive workforce, human resources development is important. By supporting employee development, a business strengthens its resources and raises the value of its workforce.

Strategic human resource management is the process of integrating human resources with strategic goals and objectives in order to improve organizational performance and foster an environment that fosters innovation, adaptability, and competitive advantage.

To know more about human resources development

brainly.com/question/10583893

#SPJ4

7 0

1 year ago

Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for

DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above, we are able to prove that the answer is '5'.

Cheers!

3 0

3 years ago

A corporate bond with a 6.5 percent coupon has 15 years left to maturity. It has had a credit rating of BBB and a yield to matur

Scrat [10]

Answer:

Price change in dollars = $104.22

% decrease in price of dollars = 11.13%

Explanation:

We assume the corporate bond have a face value of $1,000

Face Value = $1000

Coupon = 6.5%*1000/2 =32.50

Number of Periods = 15*2 =30

Semi annual rate of BBB bond = 7.2%/2 =3.6%

Price of BBB Bond = PV of Coupons + PV of Par Value =

Price of BBB Bond = 32.50*(((1-(1+3.6%)^-30)/3.6%)+1000/(1+3.6%)^30

Price of BBB Bond = $936.43

Semiannual Discount Rate for BB bond = 8.5%/2 = 4.25%

Price of BB Bond = PV of Coupons + PV of Par Value

Price of BB Bond = 32.50*(((1-(1+4.25%)^-30)/4.25%)+1000/(1+4.25%)^30

Price of BB Bond= $832.21

Price change in dollars = $936.43 - $832.21

Price change in dollars = $104.22

% decrease in price of dollars = $104.22 / $936.43

% decrease in price of dollars = 0.111295025

% decrease in price of dollars = 11.13%

6 0

3 years ago