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Alex Ar [27]
2 years ago
11

Earning interest on previously earned interest is called?

Business
2 answers:
ioda2 years ago
7 0
Bonus interest is it's name
nydimaria [60]2 years ago
7 0

Answer:

Compounding

Explanation:

Compounding is earning interest on previously earned interest

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You are set to receive an annual payment of $12,100 per year for the next 17 years. Assume the interest rate is 7 percent. How m
uranmaximum [27]

Answer:

The difference in value is worth $8,269 more in money.

Explanation:

Case 1. Payments are made at the end of each year

So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.

Here

Annual Cash flow is $12,100

Interest Rate "r" is 7%

And

Number of Payments "n" will be 17

Present Value = Cash flow * [1 - 1 / (1+r)^n] / r

By putting values, we have:

Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%

Present Value = $12,100 * 9.763223

Present Value = $118,135

Now

Cash 2. Payments are arising at the start of each year

Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.

So

Present Value = Cash flow     +       Cash flow * [1 - 1 / (1+r)^n] / r

So by putting values, that were used in case 1, we have:

Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07

Present Value = $12,100 + $12,100 * 9.446649

Present Value = $126,404

Difference in Present Value = PV of Case 1      -    PV of Case 2

= $126,404 - $118,135 = $8,269

The difference in value is worth $8,269 more in money.

4 0
3 years ago
Smallville has a linear production possibility frontier in the production of good X and good Y. It can produce 6 of X per hour o
aliina [53]

Answer:

The maximum amount of good Y produced will be 960.

Explanation:

Smallville has a linear production possibility frontier in the production of good X and good Y.

It can produce 6 of X per hour or 8 of Y per hour.  

It has 240 hours of labor and divides labor hours equally between the production of good X and good Y.

It means that both good X and good Y get 120 hours of labor each.  

The amount of good Y produced in 120 hours

= 120\ \times\ 8

= 960 units

6 0
3 years ago
What is the slope of the line represented by the equation y=-2/3<br>- 5x?​
iren [92.7K]

Answer:

the slope is -5 or -5/1

Explanation:

7 0
2 years ago
If aggregate expenditure in an economy equals 1,000 0. 9y and full employment real gdp equals 9,000, then this economy has:_____
LenKa [72]

The economy would be in equilibrium as  AE = 1000 + 0.9Y

Y = 1000 + 0.9Y

Y - 0.9Y = 1000

(1-0.9) Y = 1000

Y = 1000/0.1

Y = $10000

AE = 10,000

<h3>What does total spending actually mean?</h3>

Aggregate expenditure, a macroeconomic statistic, is used to measure and evaluate the total amount of economic activity or output within a country. A nation's total outlays over a given time period are measured by aggregate expenditure, just as the gross domestic product (GDP) and national income.

Expenditures that alter in reaction to real GDP are referred to as induced aggregate expenditures. Take consumption spending as an example of an induced aggregate expenditure, which rises with real GDP.

For more information about aggregate expenditure refer to the link:

brainly.com/question/13525490

#SPJ4

6 0
1 year ago
PLEASE HELP ME ;( <br><br><br> List two characteristics of an oligopolistic industry.
Gekata [30.6K]
1. firms that sell identical/<span>differentiated merchandise.

2. an industry that has notable barriers to entry.

Hope it helps!</span>
7 0
2 years ago
Read 2 more answers
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