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PSYCHO15rus [73]
3 years ago
11

Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both re

quire an initial $10,000 investment. The future value of A minus the future value of B is equal to ________ (to the nearest penny).
Business
1 answer:
Dafna11 [192]3 years ago
4 0

Answer:

$3.344,67

Explanation:

Investment A( Simple interest) =  Cf= Ci x(1+(ixn)) = $10.000 x(1+0,0775*10)=

$17.750

Investment B (Compound interest)= Cf= Ci x(1+i)^n = $10.000 (1+0,0775)^10=

$ 21.094,67

A - B = $17.750 - 21.094,67 =  - $3.344,67

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kaheart [24]

Answer:

The normal balance of liabilities is a credit.

Explanation:

In the double entry system one account must be debited in order for the other to be credited.

There are different balances for each account. For the accounts with normal credit balance a credit causes it to increase while a debit decreases it.

For accounts with negative balance a credit reduces its balance while a debit increases its balance.

- Asset: Debit

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Liabilities are debt owed by a business. When payment is given out to settle a debt (a debit) it reduces to amount a business owes.

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So liability has a normal credit balance

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Answer:

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stellarik [79]

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