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GaryK [48]
3 years ago
6

What is compund interest?

Business
2 answers:
yanalaym [24]3 years ago
7 0

The method of calculating the interest where the interest gained over the specified time is summed up to the principal.

<u>Explanation:</u>

In simple words, calculation of compound interest includes the principal and accumulated interest of the previous year of deposit. It is considered to be magical word as it helps in building wealth.

For example, assume ABC company invests 20$ in a bank with 5% interest per annum (year) for 10 years so, here the compound interest is . The compound interest can be calculated with the following formula,

\bold{\text { Compound Interest }(C I)=P\left(1+\frac{r}{n}\right)^{n t}-P}

where, A is the Amount; P is the principal; r is the rate of interest; n is the number of times the interest is compounded per unit‘t’ and t is time or number of years.

dlinn [17]3 years ago
4 0

Answer:

compound interest- interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

Explanation:

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Profits and losses play an important role in helping a. to signal to government which businesses are suffering losses so that th
Damm [24]

Answer:

Profits and losses play an important role in helping  direct businesses toward productive projects and away from ones that are productive.

Explanation:

That is the essence of accounting and finance monitoring that the efforts that the company is carrying out are compensating with the corresponding profits; If this is not the case, we make corrections or start new projects. Knowing profits and losses, we can know if a business is viable or not.

6 0
3 years ago
Which of the following statements about the two alternative methods that may be used when preparing the statement of cash flows
Kipish [7]

Answer:

The following records won't be required in drawing up a cash flow statement:

a. Income statement (True)

b. Balance sheet (True)

c. Prospectus (False)

d. Financial statement notes (True)

e. Company news releases (False)

f. Statement of cash flows (True)

g. Stock price information and analysis (False)

h. Statement of shareholders' equity (True)

i. Management discussion and analysis of financial performance (False)

Explanation:

A cash flow statement is an element of the financial statement which helps investors identify the liquidity of the business.

It reveals in great details the sources and uses of the cash resources of the business, and gives true indication to the internal workings of management in wealth creation for the shareholders

Since its only concerned about the cash uses and sourcing, it means not all financial record of the business will be essential in drawing up a statement of cash flow.

8 0
3 years ago
The Nixon Corporation’s common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the mark
Archy [21]

Answer:

13.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.8% + 1.7 × (10% - 4.8%)

= 4.8% + 1.7 × 5.2%

= 4.8% + 8.84%

= 13.64%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

6 0
3 years ago
What item flows from the income statement to the statement of retained​ earnings?.
Reil [10]

Net Income flows from the income statement to the statement of retained earnings.

The balance sheet is balanced when net income from the income statement, less any dividends paid, is transferred to the retained earnings column. Additional connections- Long-term debt on the balance sheet is used to determine interest expenditure on the income statement.

Net income: In commerce, Net Income is the amount of cash left over on balance costs, like salaries and wages, the value of commodities or raw materials, and taxes, are paid. Net Profit is the amount that an individual keeps after paying taxes, insurance premiums, and retirement contributions.

Net Income.

To learn more about the question, please visit the following link:

brainly.com/question/14531265

#SPJ4

5 0
1 year ago
If the company obtained a loss before taxes of $36,000 during the year, calculate the amount of ISR
Sever21 [200]

Explanation:

to calculate the loss without Isr the company removed isr form its revenue and loss metrics for both presented years in calculating the adjusted ebitda

3 0
1 year ago
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