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salantis [7]
4 years ago
5

Why do you earn more money using compound interest than you would using simple interest?

Business
1 answer:
PilotLPTM [1.2K]4 years ago
8 0

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.

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Answer:

Explanation:

Variable MOH rate variance = Actual Hours × (Actual Rate - Standard Rate)

= 4050 × ($7.50 - $4.50)

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4 0
3 years ago
A few years ago, Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoy
Allushta [10]

Answer:

General Motors had more of a Production Orientation

Explanation:

The company which is production oriented focuses on the production and company's production processes and runs campaigns to sell the product produced or the product they are producing. General motors produced the products which it is good in producing the products and won the market against great giants like Ford, Toyota and German auto companies. Whereas Toyota was developing market which is newly born and started pricing their products on the basis of products that were desired (environmentally friendly products) and lost the market because of lost of market share as this market was in introduction phase and Toyota left a market which was at maturity. Then it is obvious that Toyota has revenue losses due to leaving its concentration and marketing of products to mature market and was busy in developing environmentally free products market in US.

7 0
3 years ago
Central Park Inc. is a company that sells women's clothing. It recently shut down its physical store and is operating as an app-
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Answer:

M-commerce

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Since in the given situation it is mentioned that Central Park Inc sells the women clothing and currently they shut down the physical store and they are operated now through app based. With this feature, anyone could access anywhere via using the mobile phones also at the same time the customer compared the prices

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3 years ago
Which statement is not correct about the business-society interdependence?
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Answer:

D. Actions by governments rarely significantly affect business

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Business-socciety interdependence points out how business activities impact society and how society impacts business decisions. Government actions play a significant role in business performance. For example, an increase in interest rate increases the cost of borrowing and acts as an investment disncentive. Likewise, an increase in corporation tax stifles the incentive to invest and reduces corporate profit. Other government interventions such as standards and regulations, minumum wage legislations, permits and licenses would not only reduce business profits but could make doing business very cumbersome. Also, the extent to which the government is committed to maintaining political stability could determine the extent to which invesmtent thrives in an economy.

6 0
3 years ago
On September 1, Year 1, Great Lakes Equipment receives $24,000 from a customer for work to be performed evenly over the next 2 y
posledela

Answer:

Great Lakes should recognize on the income statement for the year ending December Year 1 $4,000

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The income statement only recognize the amount of money that was generated during the period of the income statement.

If the company invoiced by month, it only recognize the total amount for the last four months of the year.  

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