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4 years ago

2. What is the difference between compounding and simple interest? (2 points)

1 answer:

5 0

Answer: Simple interest is calculated only on the principal amount, when compounded is calculated on the principal amount and the interests.

Explanation:

Hi, the difference between compounding and simple interest is that the simple interest is calculated only on the principal amount deposited, the original amount.

A = P (1 + rt)

In the other hand, compounded interest is calculated on the principal amount and in the accumulated interests of the different periods (interest on interest)

A = P (1 + r/n) (nt)

n is the number of times that interest is compounded per unit t

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The following events occurred for Favata Company: a. Received $13,000 cash from owners and issued stock to them. b. Borrowed $10

Vladimir [108]

Answer and Explanation:

The indication of the account, amount and the direction of the effect are as follows

As we know that

Accounting equation is

Total assets = Total liabilities + stockholder equity

Based on this, the indication and the direction aare as follows

Assets = Liabilities + Stockholders' Equity

A) $13,000 = 0 + $13,000

It increased both the assets and the stockholder equity i.e capital

B) $10,000 = $10,000 + 0

It increased both the assets and the liabilities

C) $1,100 = $1,100 + 0

It increased both the assets and the liabilities

D) +$18,000 -$1,600 = $16,400 + 0

It increased the land by $18,000 and decreased the cash by $1,600 and at the same time it increased the liabilities by $16,400

E) +$6,000 -$1,600 = $4,400 + 0

It increased the equipment by $6,000 and decreased the cash by $1,600 and at the same time it also increased the liabilities by $4,400

Total $44,900 = $31,900 + $13,000

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3 years ago

The model and concepts used to develop the economics of __ are similar to those used to illustrate the effects of:

zhuklara [117]

Answer:international trade: trade between individuals

Explanation:

I got it right

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3 years ago

When society produces the combination of goods and services on the ppf that it values the most highly, society has?

Brums [2.3K]

When society produces the combination of goods and services on the PPF that it values the most highly, society has Allocative efficiency. PPF is defined as the public provident fund, and Allocative efficiency<span> is the point in which the preference of the product consumption is balanced in production levels in an economy. This is specifically related to the benefit of a product or service being equivocal to the cost of making it, directly reflective of consumer preferences.
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3 years ago

Key inputs to the verification process include?

Citrus2011 [14]

The purpose of verification, as a normal motion, is to become aware of the faults/defects introduced at the time of any transformation of inputs into outputs.

Verification is a pleasant manage technique that determines if a machine meets its gadget-stage necessities. Inspection and demonstration is the principle testing technique used in Verification.

The Verification procedure offers the evidence that the gadget or machine detail plays its meant capabilities and meets all performance requirements listed inside the machine overall performance specification and functional and allotted baselines.

Learn more about verification method here:brainly.com/question/14513832

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2 years ago

Mary O. Andrettey wants to purchase an expensive sports car. She needs to borrow money to purchase the car, and has loan proposa

irina [24]

Answer: Proposal C

Explanation:

The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.

Proposal A.

Periodic payment of $2,000 makes this an annuity.

Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r

= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%

= $103,451.12

Proposal B

Present value = Down payment + present value of annuity

= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]

= 10,000 + 93,676.70

= $103,676.70

Proposal C

Present value = Present value of annuity + Present value of future payment

= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]

= 16,435.51 + 85,999.17

= $‭102,434.68‬

<em>Proposal C has the lowest present value and so is best. </em>

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3 years ago