All categories

3 years ago

Interest of the building on the principal and interest already gained is what

Business

1 answer:

Furkat [3]3 years ago

6 0

Answer:There u go

Explanation:

Perhaps you have heard of the miracle of compounding. Innumerable investors have used it to their advantage to make their money grow faster than would be the case with simple interest. The great thing about compounding is that it doesn't require additional work on your part: you just sit back and watch your money grow. How's that for an investment strategy?

There are two basic types of interest: simple and compound. Simple interest is the amount of interest earned on the original amount of money invested. Simple interest is paid out as it is earned and does not become part of an account's interest-bearing balance. The invested amount is called principal. Let's say you invest $100 (the principal) at a yearly interest rate of 5 percent. Multiplying the principal by the interest rate gives you an interest payment of $5. This is your simple interest. The next year and each year thereafter, you will be paid $5 of interest on the principal of $100.

Compound interest is interest paid on interest. At 5 percent interest compounded annually, you will have $105 after the first year. If you keep this investment for another year, you will be paid interest on your original $100 and on the $5 you made in interest the first year. The longer you invest your money, the higher your interest payments will grow, not only on your original amount but on the additional interest you earn each year. This is what makes compounding interest so powerful.

When credit unions speak of compounding, they refer to dividends rather than interest.

The longer an investment is allowed to compound interest, the faster your balance will grow and the higher your returns will be. In the case of compounding interest, time really is money. Let's say you invest $1,000 for five years, with an annual interest rate of 5 percent. The difference in your investment earnings from simple and compounded interest will look like this:

Comparison of Simple and Compound Interest

You might be interested in

Storm Concert Promotions Valle Home Builders Actual indirect materials costs$12,400 $7,000 Actual indirect labor costs 55,900 46

Minchanka [31]

Answer and Explanation:

Storm Concert Promotions

The computation of overhead is shown below:-

Factory Overhead-Storm

Indirect materials $12,400 Applied overhead 91,600

Indirect Labor $55,900

Other overhead

costs $16,000

Overapplied overhead $7,300

The Journal entry is shown below:-

Factory overhead Dr, $ 7,300

To Cost of goods sold $7,300

(Being cost of goods sold is recorded)

Valle Home Builders

The computation of overhead is shown below:-

Factory Overhead-Value home builders

Indirect materials $7,000 Applied overhead 98,300

Indirect Labor $46,900

Other overhead

costs $48,900

Overapplied overhead $4,500

Factory overhead Dr, $ 4,500

To Cost of goods sold $4,500

(Being cost of goods sold is recorded)

5 0

3 years ago

The slope and position of the long-run aggregate supply curve

malfutka [58]

<span>Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply.

__ The price level
__ The inflation rate

Suppose the economy produces real GDP of $50 billion when unemployment is at its natural rate.
(graph goes here)
Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new jobs more quickly. The policy will cause the natural rate of unemployment to (rise / fall) which will:
__ Shift the long-run aggregate supply curve to the left

Direction of LRAS Curve Shift:
Many workers leave to pursue more lucrative careers in foreign economies. (Left )
For environmental and safety reasons, the government requires that the country's nuclear (Left)
power plants be permanently shut down. (Left )
An investment tax credit increases the rate at which firms acquire machinery and equipment. (Right)</span>

5 0

3 years ago

Read 2 more answers

Probett's Auto Body Repair Shop had revenues that averaged $90,000 per week in April and $80,000 per week in May. During both mo

Dmitriy789 [7]

Answer:

For April, revenue was $90,000 and labor hours were 4x[(40x6)+(25x4)]. This is 90,000/1,360 = 66.18 dollars per hour of labor. For May, revenue was $80,000 and labor hours were 4x[(40x6)+(10x2)] This is 80,000/1,040 = 77 dollars per hour of labor a difference of $ 10.82per hour. The percentage change in productivity between April and May, then, is 3.95/44.12 = 0.1634935026x 100 = 16.35%

good luck ❤

6 0

3 years ago

On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for $344,260.74. The bonds provide t

Delvig [45]

Answer:

Following are the responses to the given points:

Explanation:

For point a:

Criteria I

Date: 1-1.2020 Debt Investments $\$3,44,260.74$