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:
B. Value-conscious.
Explanation:
In the scenario above Preshant can easily be tagged a value-conscious consumer particularly because of her keen interest and concern for price and goods quality.
It is also noted that their have always been segments of the population to whom value has mattered. This is especially the low-income families have long since used tactics such as coupon clipping to get the most out of their spend. However, as the economy recovered and strengthened, this prediction did not materialize.
Answer: $55,000
Explanation:
From the question, we are told that in the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, and the equipment account increased $20,000 due to a cash purchase, while the bonds payable increased $70,000 from an issuance for cash at face value.
The net cash provided by investing activities shows the amount of money that has been spent for investment purposes at a specific period.
Sales of land = $75,000
Less: Equipment purchase= $20,000
Therefore, the net cash provided by investing activities will be:
= $75,000 - $20,000
= $55,000
